I am not just a Norfolk Real Estate Dad, I am also a Norfolk Real Estate Investor who believes in accumulating wealth through real estate assets. As a parent, you want to ensure your children have a secure future. We all know kids are expensive. I am a father of four with plans to also retire before 65. I want to share how we are doing this.
Do you want to know how my wife and I are creating a secure future for our kids and also saving for retirement while spending only a few hours per month of our time? Keep on reading.
We have purchased a property for each of our four children. All of these properties pay for their own expenses with some positive cash flow left over each month. Every month the mortgage is being paid down while the property itself is also appreciating. The positive cash flow and increasing equity allow us to cover expenses like braces, education, or their future home down payment. These properties will provide financially for our children in any direction they decide to take.
It is incredibly comforting as a parent to not have to worry about this one part of my children’s future.
To learn how to do this for yourself click here to set up your own consultation with your local Norfolk Real Estate Dad.
Now, before I walk you through exactly how we were able to buy four homes, let’s go over some of the numbers that are key to seeing the big picture. This little bit of math can make you a millionaire.
If you bought just one house that broke even every month, you could accrue equity every year by simply having your tenants pay down your mortgage. Let’s assume you purchase an average home which in Norfolk County right now would be worth $350,000. (If you are in a different area just insert a number which makes sense for your town.) This would provide you with a fully paid off property in 25 years. But houses do tend to increase in price over time so let’s add in some appreciation.
Let me start by saying that past performance does not guarantee future returns, but it can give you a good estimate. Over the past 30 years in Southern Ontario, the average home has appreciated five percent per year. Now let me go over some numbers to break this down for you.
The Rule of 72
The rule of 72 tells us that five percent annual appreciation will cause your asset to double in value every 14.4 years. Let’s assume that over the next couple decades appreciation is a bit lower and let’s say that your investment property doubles in 18 years. If you were to buy a $350,000 property when your child is born then by the time they are ready for University this property would be worth $700,000 and you would only have $106,000 left on your mortgage which gives you $594,000 of equity to pay for University.
I hear what you’re saying. These numbers sound insane. No way houses go up that much.
In 2010, the average home in Norfolk County was $200,000.
In 2019, the average home is over $350,000!
That is over a 75% increase in just nine years!
In 25 years you could own a million dollar house mortgage free.
What would a million dollar asset mean to you in retirement?
You may think you are too busy to find a house, buy it, and become a full-time landlord or that you have no idea where to start. Well, let me tell you more about what we did.
In 2014 my wife and I bought our first investment property, my wife was pregnant with our second child, we were celebrating our first child’s first birthday, and only had $7,000 in the bank. I had a decent paying job and my wife was a full-time mom (I definitely had the easier job).
We had every excuse to not take action and just continue along collecting a paycheck every two weeks and saving up the few dollars we could in an RRSP or TFSA. We could see that inflation was outpacing my annual raise and things like University tuition and home prices were soaring. We had to do something and that is when I discovered investment properties, creative financing, and value add techniques.
We were able to leverage short term loans for the down payment and renovations to buy a home in need of work and complete the value add renovations (added a third bedroom and opened up the kitchen/living area). We did not know it at the time, but this was our first BRRRR project. Shoutout to Brandan Turner at BiggerPockets for coining that term. Buy Renovate Rent Refinance Repeat. This process has been the foundation we used to build our portfolio.
In short, we added enough value to that property to refinance it and pull out all of our invested capital while still keeping the property and having the tenant pay for all of the expenses. Our capital then went to the next property, then the next one, then the next one and now we have 6 rental doors over 4 properties and have gone from a net worth of under $20,000 to over $350,000 in under 4 years. I do not share these number to brag but to show you what is possible.
Sounds complicated I know, but I can help you take this first step. Take advantage of the years of experience and research I have acquired to make YOURSELF wealthy.
Click here and contact the Norfolk Real Estate Dad today.
After our first property, we continued to add tools to our toolbox. We bought a house with an oversized yard and severed off a new building lot to sell. We began adding auxiliary dwelling units (Granny Flats) in our single-family homes to increase cash flow. And even added a basement apartment in our own family home that now pays the majority of our own mortgage each month.
You may think my wife and I are exceptional people and most people would never be able to do this. Your half right, my wife is superwoman. I have no idea how she manages 4 kids, a full household and always has a smile on. Even though my wife is super-human I am not. I am an Average Joe no different than yourself. The one thing I did do though was take action. I took that first step, stumbled a bit then took another step. I stepped out of my comfort zone and that is where personal growth exists. The thing that makes you feel the most uncomfortable is exactly what you most need to do.
So get uncomfortable, take that first step and contact The Norfolk Real Estate Dad. Whether you’re looking to invest in Norfolk County or anywhere else, contact me and I can either help out directly or link you up with the local experts in your area.
P.S. It is never too late to start building wealth for your future. No matter what point you are at in life or what you want extra money for, Real Estate can help you achieve your financial goals.
P.P.S. If you are still reading and have not clicked the link yet you are likely a skeptic. I am a skeptic as well. As a skeptic I have learned that people can lie, people can exaggerate, but numbers never lie. Take another read through that boring math at the beginning of this article and then click the link to change your life forever.