Strategizing to Build Your Investment Portfolio.
We all like to “keep our ducks in a row” but the ducks sometimes scatter when it comes to our investment portfolio. What we need to do is keep a “bird’s eye view” if we are planning to buy several revenue properties.
Suppose you determine, as you look ahead, that you will require $8,000 per month in cashflow in order to a.) give up your day job b.) start a girls’ school in Afghanistan c.) move to Bahamas d.) all of the above. You have estimated that 40 “doors”, cashflowing at about $200 per month will enable you to hit that target. If you purchased 40 doors at an average of $250,000 per door you would require about seven and a half million dollars worth of mortgages.
But don’t lay that on the loans officer at your local bank! They’re liable to push that little red button under their desk! Most banks have a maximum of mortgage money that they will lend a client. You might be approved for two mortgages at your local bank and then, just when you’re feeling like you’re getting the hang of it, they say NO!
A good mortgage broker knows these caps and can help you develop a strategy. Once you “cap out” at one bank, you methodically move on to the next one, according to plan. Along the way, the mortgage broker will also work with you to determine your Debt Servicing Limit and the impact of the cashflow you get from the properties you own at that point. (Watch those “alligators” – but that is a topic for another day).
In conclusion, have a goal and then work with your team of professionals to develop a strategy for getting there. If you are investing in Calgary Real Estate, I would be privileged to help along the way.
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Helping You Build Wealth through Real Estate
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