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GTD is passionate about investing in income producing properties and other longer-term property assets. We are committed to maximizing the cash flow and growth potential of each investment we make.
With each project, we attempt to preserve the character of a given property in terms of maximizing the return on our investment. In some instances, this means minimal work, like paint and new fixtures, while in other instances, more significant rehab is necessary.
We work with a team of professionals who are experienced with all legal, accounting and contracting to ensure all of our joint venture projects are protected with the goal of win-win for everyone involved.
If you are interested in a joint venturing opportunity with GTD, we would be happy to discuss what this will look like through a face-to-face meeting so we can determine if our investment goals are aligned.
Why Real Estate?
According to those in the know the three best ways to build wealth are:
- Real Estate
For us Real Estate is the path that gives us the most pleasure and when we can combine it with entrepreneurship and innovation in renovation we get the best of all three. There are many ways to make money from real estate and below are just a few examples.
- Rental income. This is the main source of profit investors are going for when buying a rental; kind of a no-brainer there.
- Buying low. You turn an instant profit if you purchase a property under market value. Consider quick sales and great negotiation skills.
- Selling high. You can make attract buyers over market value by being strategic, good planning and excellent staging.
- Increasing equity. If you take a mortgage to finance a rental, you are increasing your equity with every mortgage payment.
- Leverage increases returns. Put 20% down on a property and you still receive rental income based on 100% of the property value, making an excellent return for your 20%.
- Leverage makes you profit on the full selling price. If that same $100,000 property you bought with $20,000 down sells for $120,000 a few years later, you get your $20,000 plus principal payments back, and a $20,000 profit. It is only a 20% profit over the full value of the property, but thanks to your leverage, you are making a profit of 100%, minus principal payments to the $80,000 mortgage. The bigger the leverage, the greater the return.
- Renting smaller units. Instead of renting out a whole house to a family or individual consider renting out smaller units, for example student rentals.
- Renting to businesses. Businesses are a different type of tenure and rents are generally higher, they can also be safer IF you choose a reputable business as a tenant.
- Tax benefits on interest. You can often deduct the mortgage interest from the rental income, and create a tax free profit.
- Tax benefits on improvements. You can also deduct the cost of the improvements from the rental income, while the added value to the property is yours to keep.
- Profit from a lump sum on a refinance. For example, you purchased your $100,000 place, and put $10,000 worth of improvements, that the tenants paid back with rents. The property is now worth $125,000 because of the renovations and you can refinance to get the $25,000 cash and put 25% down on your next $100,000 rental!
- Profit from extra cash flow on a refinance. If you are able to refinance the property to lower your mortgage bill payments while the rent stays the same, you are generating more cash flow every month. You can build a cushion for maintenance, save up for a deposit on a new rental, or have more passive income to live off.
There are certainly other opportunities for wealth creation but these are the highlights. Partner with us and let’s build together!