“Cash may be king, but cash flow built the kingdom”

– David Sandbrand

The simple beauty of Investment Real Estate is that every month, the tenant’s rent pays the mortgage and expenses, and the leftover money goes into your pocket.

When you consider that each year rent goes up, and the mortgage balance goes down, it means that every year there’s a bit more cash left at the end of each month.

So what this means is that every year you own the property, it provides you more income (in addition to appreciating in value).

Compare that to your RRSPs. With traditional RRSPs, every month that you take some income out of it, the total value of the RRSP reduces, leaving you a smaller pool to pull from next month. If you live long enough, you eventually run out of money!

With Investment Real Estate, the longer you own the property, the more money it provides you each month. If you pass that property to your children, they immediately have a large source of passive income.

The bottom line is that Investment Real Estate creates generational wealth.