Real Estate Tips I Learned From My Grandparents Pt. 3 -How to Create Secondary Income

Posted by Jerad Cox on Friday, May 18th, 2018 at 7:26am.

 

My grandpa, on my dad's side, owns a farm up in Northwestern Alberta. He is a hard-working man who was still farming and calving into his early 80's. I try to get up there once or twice a year for a visit.
 
I certainly didn't expect to get real estate tips from him.  However, by observing what he was doing as he got older, I was able to do just that. The key thing that he taught me was how to create secondary income within the property that you own.
 
So how did he do it? 
 
Well, as he got into his 60's and 70's, he was getting a little too tired to be able to farm full time. So rather than sell his farm he decided to lease the land out to his neighbors and others in the community, under a condition. He mandated in the lease, he was allowed to work for as long as he wanted and as much as he wanted, and they would have to pay him.
 
Simply put, he was paid by the tenant to use his land as well as got paid as an employee to work it.  He also had absolutely no risk should there be a bad crop on a particular year.
 
Smart!
 
So how does this story relate to today's Edmonton real estate market? 
 
It's simple. 
 
There are always new and creative ways for you to take areas of your home to help create more real estate income. Do you have an extra space in your garage? Rent it out for someone to store their sports car in the winter. Have an extra bedroom in the basement but don't want to have a full-time tenant? There are plenty of exchange student programs and rent a room situations that are out there. Looking to buy a bigger home but don't want to make the payment? Ask your builder to build out the basement as a suite and rent it out to help pay off the mortgage.
 
The only thing that will limit you is your imagination and proper due diligence.
 
Where there's a will there's a way!

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