Jack Ma, the richest man in China, once said:
​“If you put bananas and money in front of monkeys, monkeys will choose bananas because monkeys do not know that money can buy a lot of bananas. In reality, if you offer a job and a business opportunity to people, they would choose the job because most people do not know that a business can bring more money than salaries. Profit is better than salaries because salaries can make you a living, but profits can bring you a fortune.”
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​While I don’t fully agree that people are unaware of the potential wealth from business ownership, I do believe many choose jobs because they see them as easier, more stable, and providing a consistent income, especially in a competitive world where businesses can fail.

The reality, however, is that depending solely on a salary limits your potential—unless, of course, you’re a CEO with multimillion-dollar bonuses and substantial company ownership.

Jack Ma's comparison emphasizes a mindset that many of us either unconsciously or consciously adopt, often overlooking the fact that true wealth and opportunities exist beyond the boundaries of traditional employment.

Monkeys might be happy with bananas...
But are you settling for a "banana" too?

Most people are trained to think that a good education, a prestigious degree, and a stable job are the only paths to financial security. And while that may have been true for earlier generations, the modern world offers greater potential for wealth, especially for those who value entrepreneurship and investing. The most significant limitation of a job is time. No matter how well-paid you are, your income is tied to the hours you can work, and there are only 24 hours in a day. This limits your income potential.
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​On the other hand, profits from businesses or investments have no limit. By utilizing systems, successful business models, automation, and leveraging other people's labor, you can generate income even while you sleep or take a vacation, leading to unlimited potential. When your business or investment can run independently around the clock, your income becomes passive, allowing your wealth to grow in ways that a regular job could never match.

One of the most reliable wealth-building systems is real estate investment. For hundreds of years, real estate has been a proven method to create generational wealth. However, not everyone understands the best approach to take when investing in real estate. Let’s explore three common strategies that people use. 
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​1. Speculation: The Gambler's Approach
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​Many people, particularly beginners in real estate see it as a speculative game—buying property now with the hope of selling it later for a big gain. These speculators often follow trends, hoping to capitalize on rising markets. But as history has shown, this strategy is risky. Markets can shift due to factors beyond anyone’s control, such as interest rate changes, government policies, or global events. When the market turns, speculators are often caught off guard, leading to financial losses.

From my own experience, I have seen both sides—people who have lost money and others who made good returns. However, if your strategy is based solely on the hope that property values will rise, you are essentially gambling. Real estate can be unpredictable in the short term.  For those who rely on short-term speculation, it's easy to become disappointed and claim that real estate is not a reliable way to build wealth. But the truth is, gambling rarely leads to sustained wealth unless you control the game.

2. Long-Term Thinking: The Real Wealth Strategy
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​The second, and by far the best, strategy for building wealth in real estate is to think long term. This mindset shift separates speculators from true investors. Successful investors understand that real estate is not a get-rich-quick scheme, but a long-term wealth-building tool. The key is to focus on cash-flowing properties—those that generate rental income and cover their own costs. Appreciation of the property’s value over time is simply a bonus and not the primary source of profit.

By holding properties for the long term, you let market forces work in your favor. Over time, real estate typically appreciates, rental income rises, and your cash flow grows. Additionally, equity builds as mortgage principal is paid down. Whether investing in single-family homes, duplexes, quads, student rentals, or rent-to-own properties, the opportunity for long-term wealth building is enormous.

3. Passive, Hands-Off Investing

If you're looking for a completely passive investment option, consider investing with developers or in real estate investment trusts (REITs). However, I’m not a big fan of REITs, as I prefer better returns. While REITs have outperformed stocks over 20- to 50-year horizons and are less volatile than the S&P 500, they typically offer annual returns around 10–14%. On the other hand, developers often present projects with attractive returns of 18–25% annually.

​These passive approaches allow you to diversify your investments while enjoying the potential for real estate-based profits without the active involvement required in managing properties.
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​If you're a Canadian interested in investing through RRSP, LIRA, TFSA, RESP, or simply want to grow your hard-earned money, we can help. Our developers' network has invested equity in over 110 residential and commercial real estate projects, with an estimated completion value surpassing $40 billion. They offer investment terms ranging from 4 to 7 years, providing impressive yearly returns of 18-25%. Reach out to us today for more information.