Topic: How To Invest

What is Pat’s commentary for the week of January 23, 2018

Article Excerpt

Dear Inner Circle member, A friend recently asked me what I thought about his investing plan. He’s a middle-aged professional with a young family, and dependable cash flow from a growing practice. He began investing in the stock market prior to the 2008/2009 recession. A decade ago, he began investing in Toronto real estate, and this has paid off better than his stock investing. He likes to buy small residential or professional office buildings that need repair. He puts a high down payment on every property he buys. He then renovates the properties and raises the rents. In some cases, he re-configures the units in the property so they generate more income in the current rental market. He prefers to buy with high down payments because that lets him borrow less for the purchase. That way, it takes less time for the property to begin churning out a stream of positive cash flow (that’s when the cash income from rents exceeds the cash…

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