Everyone loves to find money they didn’t know they had. Real estate investing with RRSP's is a whole lot better than finding a twenty dollar bill in your old jacket, and much more profitable!

Once we can get past the idea that profit is a dirty word we can start thinking like the banks do. We put our funds into a safe savings account at the bank and they go about making money by investing it while giving us a ridiculously low return on those funds. What if we could make that profit ourselves without the banks? Your initial reaction is probably your fear of not having that kind of money. This is where your new found money can go to work for you. Any money you have invested in RRSPs is usable to invest in mortgages or investment loans for yourself. Your first step will have to be that your contributions be in a Self Directed RRSP. Your agent will have to make this change for you but don’t expect him to like it.

This investment vehicle offers a few choices for profitable investing. Most financial institutions will have a mortgage pool that you can opt into. The bank puts everyone’s contributions into a pool and then withdraws funds to be used in real estate investments. Win or lose, all of the investors share equally at the end of the day. Mutual funds are usually the basis for RRSP contributions but the mortgage pool will usually give better returns on your money. With that being said, there is still a more profitable option if you are a little more daring.

You can put up a second mortgage loan on a property and realize profit in the form of up to 15% interest on the use of your money. When was the last time your bank offered you a deal like that? You can invest in properties that you yourself buy or you don't have to buy the property yourself but rather use the mortgage loan as your form of investing and let a sophisticated investor do the rest.

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. There are many options available to you as an investor and it is important to do your due diligence in investigating each one. Take a look at all of your options to see which ones are right 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. It’s tough to challenge thinking that has been engraved into our minds for so many years. In order to realize financial freedom you will have to step away from the banks and go out on a limb. 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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