You've heard the adage ‘It takes money to make money' and in some cases it does. But it is equally important to use strategies that keep your initial capital low and reinvested. Investors are always interested in investing in real estate while being able to preserve and keep the capital they have available. Ideally the best investment is one made by using cash flow or funds made available from capital you already have invested somewhere else. Here are three low risk easy ways to invest without touching your capital.Strategy 1. Line of CreditUse what you've got. A good asset puts cash in your pocket every month; a bad one takes it out. Of course there are a few exceptions, but for arguments sake let's only focus on positive cash flow properties. If you have equity in your home you may be able to harness the power of today's incredibly low interest rates and use your LOC to invest. If you borrow money at 2%, and make 10% on it, that is a gross gain of 8%.The general consensus is the best use of a line of credit is to purchase assets. Anything that you purchase that appreciates and gives you monthly revenue is an asset, however, purchases that depreciate and cost you money monthly are liabilities.Many people see no problem with using a line of credit to pay credit card debt or for a vacation; however, this is the worst thing to do. You're paying interest on a purchase that produces no income and sure you can say you have great memories of the trip, or now your card is clean, but you'll soon put another charge on it and the vacation will be long forgotten while the debt remains.What to do?Purchase cash flow positive real estate and you are leveraging the value of your home to purchase an asset.How do I do it?
Strategy 2: Self-Directed Retirement FundsOver the last year a lot of us have seen our retirement funds cut in half. For many the mutual funds that they have been contributing to for years with the hope of an early or adventure filled retirement, have now decreased in value and have pushed retirement further out of reach.You can take your RRSP or ira out of the banks hands and recapture your dream of early retirement. Self directed IRAs and RRSPs are those where you can invest with your retirement capital into a range of investments. Investment real estate is one of them. Just make sure to follow the transaction guidelines to stay out of trouble.So how do you invest?Hold a first or second mortgage using your retirement capital. The rates range from 6% to 10% at set terms and you can get balloon or monthly payments. Basically you become a lending bank to investors who can't get conventional financing.How do I do it? (RRSP)
How to do I do it? Self-Directed IRA
Strategy 3. Hold a mortgageIf you have a steady job and a good credit rating you can leverage your borrowing power in lieu of funds to invest in revenue real estate. Many investors need mortgages and there are strategies that enable you to participate. It is important to follow the bank's rules and operate in accordance with the mortgage and financing laws.Some investment companies pay people to qualify for mortgages for them. What are the benefits? Generally you get a cut of the cash flow the property produces and a percent of the profits at sale. All this just by qualifying! It's a pretty good deal because you aren't bothered with the day-to-day management of the property but can enjoy the proceeds.How do I do it?
These are all safe, proven strategies that I personally have employed over the years. When staying out of the ‘grey area' and working with a knowledgeable lawyer you can open up some great opportunities to profit in revenue real estate without having to put up any initial capital.Glenn Simon Inc. delivers superior, revenue joint venture properties in the economic power house region of the Alberta Oil Sands, Canada. Our goal is to partner you with equity building Investment Real Estate, strong appreciation and consistently profitable, safe and secure Joint Venture Real Properties. Todd enjoys spending time with his family, traveling around the world and a variety of outdoor sports.