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From agent to investor Why just broker the deals that bring investors cash flow, writes Davelle Morrison, when you could become a real estate investor yourself? DO YOU believe in your own product? If so, do you own an investment property? If the answer is no, that’s understandable if you just got started in the business and haven’t made a lot of money yet. But for the rest of you, I have a few words. Buying real estate is one of the most important investments you can make. And I don’t mean buying a big house and a Muskoka cottage for yourself. You need to buy an investment property (or a few) that generates a monthly profit. Before you put your commissions toward that fancy car, think about an investment property instead. Many years ago, I read Robert Kiyosaki’s Rich Dad, Poor Dad. His philosophy is that a house is not an asset if it owns you, because if you have a mortgage on it, you’re paying the bank to live there. He feels that a property is only an asset if it generates positive cash flow and pays you. While I don’t necessarily agree with him in regard to your principal residence, Kiyosaki’s way of thinking did make me rethink my desire to purchase a cottage. Why own something where you have to pay the mortgage and the expenses and don’t have any revenue to show for it? Owning an investment property will also give you real and relatable experiences of working with banks, tradesmen and tenants that you can share with your real estate

investor clients to bolster your credibility. Most importantly, becoming a real estate investor will give you an additional monthly income (assuming your property generates positive cash flow).

at four properties. What I love to see is not only the overall value appreciation of my properties each year, but also the monthly increase in rents as tenants turn over – which has, of late, allowed to me to increase my monthly income substantially. I’ve also recently renting my basement apartment on Airbnb, so I’ve been able to experience another boost to my monthly income. I would encourage everyone to at least own a duplex where they can live in one unit and rent out the other to bolster their income. I’ve also recently purchased two properties in Prince Edward County with friends. One property is a four-plex with longterm tenants, and the other is a six-plex with short-term rentals listed on Airbnb. The returns on both properties have been incredible.

“Partnering with clients, friends or family members is a great way to expand your purchasing power. You can take advantage of their salaried jobs, and they can take advantage of your insider knowledge” As Realtors, our commissions go up and down. Some months you might have a commission cheque, and some months you might not. Wouldn’t it be nice to have another source of income that you can rely on? That’s where an investment property can pay off. As a single woman without a partner to rely on for a second income, my tenants act as my second income. As shifts in the real estate market and technology bring change to our industry, it’s prudent to rely on more than just your real estate commissions to survive. I’ve purchased many investment properties over the years, and I’m currently sitting

Partnering with clients, friends or family members is a great way to expand your purchasing power. You can take advantage of their salaried jobs, and they can take advantage of your insider knowledge and ability to purchase properties without commission. As we all know, the market has its ups and downs. Shoring up your income with a side hustle as a real estate investor will help you through those turbulent times. REP

Davelle Morrison is a sales representative with Bosley Real Estate. She credits her property investments with making her a millionaire.

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