Since these are true investments, and not speculative sale (buy and flip), the intent is a long term hold strategy and investors know that over time, the markets go up and any adjustments can be ridden out. Perhaps the value doesn’t go up as much in any given year depending on the market, but we would still be gaining equity through mortgage pay down and positive cash flow.
No one can control what will happen in the future, however the best way to protect ourselves is to NOT get caught speculating in a market. Executive Suites Toronto will continually keep a watchful eye on our local market, we watch for the subtle signs of shifting cycles so we can be pro-active before others even see it happening.
The trick in it all is to buy positive cash flow property in an economically sound region. This will not only provide both partners with a good return on our investment, but if the market does not perform as well as anticipated, we will be protected by our cash flow and mortgage pay down.
In reality, people make money and lose money by investing poorly and non-strategically in all types of investments. Our goal here, in this partnership, is to mitigate the risks by being pro-active in managing the ‘business’ we have formed and to maximize the return on the investment.