4 ways you should be making money in Real Estate
The four ways we make money in real estate are:
1. Passive Appreciation
2. Mortgage Paydown
3. Net Cash Flow
4. Active Value Creation
The first three on the list can be had much more easily than the last, but it’s active value creation that gives investors a return on their time, energy and experience in Real Estate. If you want to make money fast in real estate you will need to get good at adding value to your properties!
Earlier this month, the City of Calgary extended the secondary suite amnesty period through to the end of next year (Dec 2021), which keeps the window open for Calgary real estate investors to perform Secondary suite conversions.
This is a proven method for increasing net worth and passive income at the same time.
In Calgary, legalizing a suite will become much more difficult and twice as expensive in 2022.
If you’d like more information about legalizing secondary suites in Calgary you can check out the city’s website here. Their page is very informative, and if you haven’t visited it in a while it’s worth a click.
Legalizing secondary suites is such a great way to get all four return streams going for you.
If you feel confident in your ability to manage a small renovation project I do feel that over the next 18 months secondary suite legalization will be the number one investment strategy for Calgary based real estate investors.
Interested in how the numbers look for legalization?
You can expect to pay between $325,000 and $450,000 for a good candidate property and the costs to legalize a secondary suite range from about $20,000 to $70,000 to get suites rent-ready.
Positive cash flows once legalized range from $250 / month all the way up to over $1000/ month!
When the amnesty period ends and the bylaw department starts targeting illegal suites you can be sure these numbers will improve!
Do you have questions?
We have connections to excellent contractors that can help you with your suite legalizations and I have access to excellent properties if you are looking for a project while the market is so slow.
As always, feel free to reach out at any time if you’d like to see a list of properties to help you move your business ahead.
I hope everyone is doing as well as they can out there considering the circumstances. Stay safe, and happy investing!