Investing Real Estate With No Money Essay

1243 Words Dec 13th, 2016 5 Pages
Investing in real estate with no money is a definite possibility, but just how does one do this? This writing is based on the Canadian banking system and how this system operates in Canada regarding real estate investment. Providing you own a home, or a major percentage of value in property you can apply for the Homeline Plan in order to leverage money for other investments, such as more real estate. You can be advanced up to 80% of your property value either in a line of credit and/or mortgage(s). This allows those with solid assets but perhaps no ready cash to re-invest without selling. Major banks, such as the Royal Bank of Canada and the Scotiabank, often will seek out their customers with solid portfolios and offer them this option. By using this system you can use the money allowed as a down payment on another property investment and/or investments. However, it is important to understand when investing that your real assets are collateral for this type of loan and should you default, they will be at risk. Providing you are in the position of already being a property owner, this is a good way to gain in the real estate market, especially with current low interest rates. You can potentially buy a rentable property using this income to pay the line of credit or mortgage. In this way, 100% of your investment is being serviced by money that is not coming directly from your own pocket. However, with properties becoming more high-priced and rents remaining relatively…

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