Who doesn’t love finding money they didn’t know they had?  Even better than finding a twenty dollar bill in last year’s jacket is realizing that you can use your RRSP money to invest in real estate.

Do you think the banks look at profit as a dirty word? Me neither.  They take our savings account deposits, invest it to make a good profit and in return thank us with an insultingly low interest rate.  Would you skip the bank as a middleman if you could?  Your initial reaction is probably your fear of not having that kind of money. That is where your found money comes in.  Any money you have invested in RRSPs is usable to invest in mortgages or investment loans for yourself. If your RRSP money is not in a Self Directed form you will have to make that your first step in this investing journey.  Your agent will have to make this change for you but don’t expect him to like it.

 You have a few choices for this type of investing .  A mortgage pool is the most basic form of this type of investing. It is kind of a slush fund where everyone who is interested puts their money into the same pot and then the bank takes money out of that pot and invests it in various real estate properties.  Profits or losses are all shared equally by the investors.  Mutual funds are usually the basis for RRSP contributions but the mortgage pool will usually give better returns on your money. However, there is still a more profitable option if you look a little further.

 Presently there are people looking for second mortgage money that are willing to pay you upwards of 15% interest for the use of yours. When was the last time your bank offered you a deal like that?  If it seems overwhelming to you, you can let a seasoned investor do it for you.

Real estate investment in Alberta is a goldmine right now as the market is red-hot and provides a fantastic vehicle to help build your future.  You really owe it to yourself to do your homework and look into the many options available to you right now.  Not everything available will work for everyone so take the time to see which ones are best for you.  It may be hard to leave the security of the bank’s low interest rates to see how far we can go without them. We haven’t been taught about our options but have mostly followed the banks with the rest of the sheep who took a meager return on the chin thinking we had no other choices. Your savings account at the bank is safe but a poor vehicle to realize financial freedom or the dreams that freedom can bring.  The banks don’t want you to know that you can do exactly what they do with your money.  Real estate investing is the way the richest people in the world have made their money. You owe it to yourself to look into it.

Rhonda Hoffman

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