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by Leasing Space
to Yourself
You Can Begin Today to Create a Sizable Financial
Estate
for Yourself by Renting Your Apartment, Store, Office or
Warehouse to Yourself
Here's how it works:
First, suppose you are currently renting an apartment and paying $1,000
a month
rent. (We'll use apartments for our example here but it could also be an office,
store or warehouse).
At the end of the year, you have collected $12,000 in worthless rent
receipts, but
you've had a place to live (or work) for the past year.
Here's How You Can Create wealth Through Real Estate
Investing
Now: suppose you purchase a small, four unit apartment
complex for $300,000 or
$75,000 per unit. Through creative financing,
you are able to obtain a $300,000
mortgage on the property. (We go
into the "how to" detail in our "How to Buy Real
Estate with Little or No
Money Down and Minimum Risk" E-book). You also
expect to pay about $3,000 in closing costs. The apartments will rent for $1,000
per month X 4 units X 12 months = $48,000 a year (including the unit you occupy
and
pay rent to yourself).
Note: Property analyses are figured based on annual
income and expenses,
not monthly.
Now you need to allow for vacancies, operating expenses and
mortgage payments
on that $300,000 mortgage. Here is how it will look:
Scheduled Gross Income (Income if 100% leased)
$48,000
Less: Allowance for vacancies (5% of Gross Income)
- 2,400
Operating Income before expenses & Mtg. Pmts.
$45,600
Less: Operating Expenses (Taxes, insurance, utilities,
repairs and maintenance, etc.) (40% of
income)
- 20,520
Equals: Operating Income (Income, before Mtg. Pmts.)
$25,082
Minus: Mortgage Payments:
- 25,172
Equals Cash Flow: <Loss>
- $< 92>
Plus: Mortgage Principal Payment
+ 2,672
Total Return:
$ 2,580
How did you do?
►You are now paying rent to yourself, not some
landlord who is getting wealthy
from renters like you. Here is what else you have gained:
►Although the property lost $92 for the year, remember, you paid $12,000
for the year. That's like money in the bank for you. You'll see why in
a minute.
►You now own a real estate investment worth $300,000.
►Each month, the income will cover (or come close to covering in some
cases)
the cost of operating expenses and mortgage payments.
►Your tenants, each month, are paying down your mortgage balance.
Notice
that your mortgage was paid down $2,672 the first year. Adding that to the
cash flow (which was negative that first year), you still showed an overall profit
of
$2,580 for the year.
►As you increase your rents, the value of the property will also increase,
as well
as your cash flow. (The value of an investment property is directly related
to
the income it produces).
►If your property only appreciates three percent next year, your $300,000
property will be worth $318,000. (That's $18,000 profit, like money in the
bank when
you sell the building). At the same time, your mortgage will be paid
down that
first year from $300,000 to about $297,000.
►Even though the property did not give you a positive cash flow that first
year,
you increased your equity in the property (your wealth) by over $22,000.
... And you did it with only a $3,000 investment.
What if you don't have the $3,000 for the down
payment? We'll show you
how to get around that, too!
►You will learn how you can realistically be a
"successful no money down"
investor. And it's not what you think. You'll learn why the majority of the
infomercials and boot camp gurus are often leading investors into high risk
situations and how to know
which ones have a chance of working for you.
►You'll be let, step by
step, through a beginning to end "investing for financial
security" program using professional techniques.
►You will get
answers to many questions you may have. It will start you in the
right direction toward building wealth in real estate. If you're already
a
seasoned pro, you will learn many new techniques to improve the profitability
of your
investments.
Thousands of users of our program are already successful investors.
Important Point: Not only will you learn the techniques
used by the real pros in
real estate investing, but our program uses the sound investment practices
taught
by the National Association of Realtors in their Certified Commercial Investment
Member (CCIM) classes. It's the same property analysis and investment
techniques used by knowledgeable real estate investors worldwide. No hype!
No
$1,000 + programs to buy, or expensive boot camps to attend! It's all right
here in one,
low cost package. Click here
to discover how you can
begin your wealth building program now, the
way the pros do it. Plus, you'll receive over $300 in valuable FREE
bonuses.
or
Order Now
- Complete Program with book &
No Money
Down E-book
and additional bonuses
A $469 Value
for Only $117 + S&H
Learn more about the free bonuses
and product pricing
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