Getting Rich in RE
Here's what you can expect when working with me. My goal is to get you up to 10 to 15 homes in our partnership as fast as possible. So how do we do that? There are lots of different ways to buy homes. Some with no down, some with 5% to 10% down, some we'll use notes as our down payment, and some will be with 20% to 30% down. Every buy is different. Again, the key is to get as many homes as possible, with as little or no negative cash flows. I'll create the capital we need to keep them all going. You have to keep your own personal accounts in good shape for about 2 years. Then we should have enough equity in some of the homes we buy to take some out if you need money for anything. There are times when it's not a good idea to take extra money out of the investment homes for personal matters. And as always the more money you leave in the homes, the faster we can get you up to 15 homes. Many investors use their personal home to create money for personal use. Rememer, at some point your investment homes will be bringing in enough money to make all your monthly obligations. Time is what we need most of.
Look below and see how your returns can grow at 8%, 15% and 20%. 8% is the lowest it's been over the last 70+ years. It's been going up 22% for the last 4 years, except for last year. I truly believe it's going to average about 12% to 15% over the next 15 years. Remember you can start and stop any time you want after the first year. You must commit yourself to this partnership for at least one year. After that you can get out, do a 1031 tax deferred exchange into commercial property, or whatever you feel works out best for you. I'll be there to help you make the best decisions to give you the best returns possible.
I BUY A $500,000 HOME. 20% DOWN
INCOME APPRECIATION EQUITY 5% RETURN
YEAR 1. $40,000 $540,000
2. $43,200 $583,200 $83,200 $2,080
3. $46,656 $629,856 $129,856 $3,246
AT THIS POINT, OR NEXT YEAR WE BUY ANOTHER HOME, ABOUT $600,000
NOW WE HAVE TWO HOMES GOING UP IN VALUE AT 8%
4 YEAR $98,388 $1,229,856 $228,244 $5,706
5. $106,259 $1,328,244 $334,503 $8,362
6. $114,760 $1,434,504 $449,263 $11,231
WE TAKE OUR EQUITY AND BUY TWO MORE HOMES.AT ABOUT $750,000 EACH.
7. YEAR $234,760 $2,934,450 $684,023 $17,100
8. $253,541 $3,169,264 $937,564 $23,439
9. $273,824 $3,422,805 $1,211,388 $30,847
AT THE END OF 9 YEARS WE BUY 3 MORE HOMES AT ABOUT $1,000,000 EACH.
10. YEAR $513,824 $6,422,805 $1,725,212 $43,130
11. $554.930 $6,936,629 $2,280,143 $57,003
12. $599,324 $7,491,559 $3,478,791 $86,969
13. $647,270 $8,090,884 $4,126,061 $103,151
$699,052 $8,789,936 $4,825,113 $120,627
15 $703,184 $9,493,130 $5,528,297 $138,207
AT YEAR 15 YOUR ½ OF THE EQUITY WOULD BE ABOUT $2,764,148.. AND AT 5% PER YEAR INCOME THAT WOULD BE $138,207 PER YEAR TO YOU. THIS IS THE LOWEST IT COULD BE.
20% YEARLY LOOKS LIKE THIS
20% APPRECIATION PER YEAR. START WITH SAME $500,000 HOME
EQUITY IS SPLIT 50/50 TIMES 5% TO FIND OUT INCOME.
INCOME APPRECIATION EQUITY BLD UP 5% INCO.
YEAR 1 $100,000 $600,000 $100,000 $2,500
YEAR 2 $120,000 $720,000 $220,000 $5,500
YEAR 3 $144,000 $864,000 $364,000 $9,100
AT THIS POINT WE BUY TWO MORE HOMES AT ABOUT $800,000 EACH.
YEAR 4 $492,800 $2,464,000 $856,800 $21,420
YEAR 5 $591,360 $2,956,800 $1,448,160 $36,204
WE BUY ANOTHER 2 HOMES AT ABOUT 1,000,000. EACH
YEAR 6 $991,360 $4,956,800 $2,439,520 $60,988
YEAR 7 $1,189,632 $5,948,160 $3,629,152 $90,728
YEAR 8 $1,427,558 $7,137,792 $5,056,710 $126,417
AT THIS POINT WE COULD BUY 5 MORE HOMES. AT ABOUT $1,300,000 EACH.
YEAR 9 $2,727,558 $13,637,792 $7,784,268 $194,606
YEAR 10 $3,272,926 $16,364,630 $11,057,194 $276,429
YEAR 11 $3,927,511 $19,637,556 $14,984,705 $374,617
YEAR 12 $4,713,013 $23,564,067 $19,697,718 $492,442
YEAR 13 $5,655,376 $28,276,880 $25,353,694 $633,842
AT THIS POINT YOU
YEAR 14 $6,786,451 $33,932,256 $32,140,145 $803,503
YEAR 15 $8,143,741 $40,718,707 $40,283,886 $1,007,097
AT THIS TIME WE COULD GO INTO AN INCOME PRODUCING PROGRAM. MAYBE A STORAGE RENTAL PLACE, OR A
15% APPRECIATION PER YEAR
AT 15% APPRECIATION YEARLY. IT LOOKS LIKE THIS. I START WITH ONE HOME AT ABOUT $500,000.
INCOME APPRECIATION TOTAL BUILD UP 5%INCOME YEAR 1 $75,000 $575,000 $75,000 $1,875
YEAR 2 $86,250 $661,250 $161,250 $4,031
YEAR 3 $99,187 $760,437 $260,437 $6,510
NOW WE COULD BUY ONE MORE HOME FOR $750,000
YEAR 4 $226,565 $1,510,437 $487,002 $12,175
YEAR 5 $260,550 $1,737,002 $747,552 $18,688
NOW WE COULD BUY TWO MORE HOMES ABOUT $900,000
YEAR 6 $530,550 $3,537,002 $1,278,102 $31,952
YEAR 7 $795,825 $5,305,503 $2,073,927 $51,848
NOW WE COULD BUY 3 MORE HOMES AT ABOUT 1,100,000
YEAR 8 $1,125,825 $7,505,503 $3,199,752 $79,993
YEAR 9 $1,294,699 $8,631,328 $4,494,451 $112,361
NOW WE COULD BUY 5 MORE HOMES AT ABOUT $1,300,000
YEAR 10 $2,269,699 $15,131,328 $6,764,150 $169,103
YEAR 11 $2,610,154 $17,401,102 $9,374,304 $234,357
AT THIS POINT WE COULD BUY A LOT MORE HOMES, BUT IT COULD BE BETTER TO JUST GO INTO COMMERICAL REAL ESTATE FOR INCOME.
IF WE DID NOTHING, IT WOULD LOOK LIKE THIS.
YEAR 12 $3,001,690 $20,011,267 $12,375,559 $309,399
YEAR 13 $3,451,943 $23,012,957 $15,827,502 $395,687
YEAR 14 $3,969,735 $26,464,490 $19,797,237 $494,930
YEAR 15 $4,565,124 $30,434,163 $24,362,361 $609,059
PERSONALLY I FEEL THAT THE EQUITY BUILD UP IS GOING TO BE AROUND 12% TO 15% APPRECIATION YEARLY OVER THE NEXT 10 TO 15 YEARS.
Appreciation
SO WHICH IS THE RIGHT ONE TO FOLLOW, THE 8% APPRECIATION, OR THE 20% APPRECIATION? PERSONALLY I BELIEVE IT’S GOING TO BE SOMEWHERE IN THE MIDDLE AT ABOUT 15%.
THE KEY HERE IS THAT IF YOU JUST KEEP HOLDING ONTO THE HOMES, AT SOME POINT YOU’LL
AT 5% RETURN ON YOUR MONEY YOU'RE GOING TO END UP AT 8% APPRECIATION WITH ABOUT $138,000 IN 15 YEARS.
OR AT 20% APPRECIATION IT COMES OUT TO $276,000 PER YEAR IN 10 YEARS.
