 Let’s say that tomorrow, you went to a bank and told them that you would like to invest in some stock. You tell them that you’d want them to let you borrow three times the amount you are investing (so if you were to invest $25,000, you’d like them to loan you $75,000). You tell them that you’d even accept a loan equal to how much you’re investing (so if you were to invest $25,000, you’d like them to loan you an equal $25,000). Needless to say, the bank will give you a clear answer: No. There is too much risk and uncertainty, they’d likely say. However, with Real Estate, it’s not uncommon at all to have a deal where you put down 25% and the bank to put down the rest, 75% in this case. The reason? Real Estate, with the right partners and projects, has minimal risks and clear paths to profit and wealth. It is known how difficult it is for banks to part with their cash, so you can imagine that if banks are willing to put this much cash in the deal, they are quite certain that the project will have a successful and profitable return. This is the attractiveness of leverage: making money on the bank’s money. Contrary to the normal practice of the banks making money on people’s money!
The beauty of leverage is that you pay the fixed rate that you negotiated with the bank in the beginning, and anything made afterwards is yours. Additionally, as many people know, the interest rate been historically at its lowest meaning this is a great time to take advantage of unique tool of leverage to improve one’s wealth. By: Aziz Amiri
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 The old adage “location, location, location,” doesn’t ring truer than when one is choosing the right location for their business. There are a few points to consider when 1. Demography 2. Competition 3. Zoning 4. Future plan 5. Distance to suppliers 6. Is the area friendly to business There is professional help available to investigate these different aspects of location determination when choosing a place to have your business. By: Aziz Amiri   Real Estate has proven time and again to be the most effective and prudent way to create and grow wealth for the vast majority of rich people. Let’s take a look at some of the reasons why that is:
The list goes on and on. By: Aziz Amiri Welcome to 145 Bathgate Drive. Gorgeous and totally renovated with 100x60 sq. ft. This beautiful house with 4 beds and 2 baths is located on the centennial community of Toronto, Ontario is ready to move. 145 Bathgate Dr is minute to highway 401, Lack of Ontario and Toronto General Hospital. For more information about this lovely house, please contact Rumi Realty point at 416-489-7777 or Sami Furmli at 647-764-7264. In a nutshell, there is no one-size-fits-all answer! It is important that businesses do their own research into which move would be the best choice. Leasing/renting allows for a more nimble business to see whether or not a location is working for them. If not once their lease runs out, they are free to find somewhere else to do business. They don’t need to worry about having to sell the building or other issues that may arise if they were landlords of the building. Of course, some may see renting as wasting money as purchasing the property would allow one to pay down the mortgage or take advantage of tax benefits and enjoy market appreciation. Also for renters, once the lease runs out, it is up to the owner whether they will allow you to stay or whether they choose to raise prices; which could put you in a pickle if you are unprepared for it. Buying has its advantages and disadvantages as well. An owner would also stand to benefit from the appreciation the building may have accrue. You get to build equity with your monthly payments instead of building equity for the owner of the property if you were leasing. You also run the possibility of perhaps renting out parts of the building if you choose to downsize or if it becomes more profitable to rent than for you to use to the space. However, a lot of responsibility comes with ownership: you are on the hook for maintenance; if you have tenants, they’ll look to you to solve their problems; there can be fluctuations in the value of your property as the market changes (this could be good or bad); it can have a very large upfront cost which could be used better to further your business; and so on. In either case, it is crucial to have a professional and expert team to help you with your commercial endeavors: from the broker or sales representative, to the lawyer, to the accountant, to the commercial mortgage broker. By: Aziz Amiri   We could all agree that it wouldn’t be stretches to say that much of the riches the wealthy have gained have come from Real Estate. One may ask, “How?” The answer is, in many different ways! Real Estate offers tens of different types and kinds of investment opportunities that, if you go about it in the smart and informed way, could be a great boon to your wealth and portfolio. The real question becomes, “What is the right opportunity for me?” For the best possible outcome, when it comes to investment, the investment opportunity should nurture and harness one’s strengths, talents, and align to his/her lifestyle; this is the winning formula. An endeavor where you should take stock of your likes, dislikes, talents, strengths, weaknesses, propensities, and then align them with your investment goals and objectives, and the varied
ways to reach them. Some investment options are single homes with basements, student housing, flipping and renovations, plazas, office buildings, industrial properties, retail condos, multifamily, land banking, and so on. Your personal inventory could be people skills, being good with hands (which would come in handy with renovation and flipping), analytical skills, skill in dealing with students, tenants, lawyers, planners, architects, contractors and so on. By: Aziz Amiri |
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