From the blog...

REAL LIFE MONOPOLY

One of my favourite games growing up was Monopoly. I always enjoyed building my empire on the board and watching my older brothers squirm as they landed on my hotels. Early in each game, I was always broke with no money because I was buying up the property on the board. Others would try to build up cash reserves. Interestingly this strategy of going broke but having “investment properties”  on the board always seemed to work. I think it is quite possible that the same can be said in real life. It is time for some people to start playing the real world game of Monopoly.

I have had the opportunity to work with some very wealthy individuals in my dealings. One thing they all seem to have in common is that they all own investment properties in Ottawa and other cities. They own them for the long-haul too. They keep them till they are paid and they can enjoy the cash flow.  I did some research to find out how much high net worth people have tied up in real estate. The number is 18% of their net worth is investment real estate. These are people with over 5 million in net worth.

The best time to start is now.  When you break down the concept it is surprising, not more people do it. Put down 20% of purchase price, have someone pay off the mortgage over next 25 years, enjoy the appreciation of the asset, have asset completely free and clear in the end with cash flow. Of course, there is risk and expenses and time like everything else. But it is worth it. Over the past 5 years of being a landlord on two properties, I have had to make one emergency call to a plumber. It is not that hard if you get the right property and tenants. Not many real estate markets in the world are better than Ottawa to start.

Anyways, if you want to learn more about building your portfolio I have a great book I would be happy to share with you. It is called the Millionaire real estate investor.