13.3 Years to Build $1M in Real Estate Assets

Post on 23-Aug-2014

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Here is how you can make $1,000,000 in exactly 13 years, 4 months without having to work and enough passive income to never have to work again. Learn: - Buying the right properties. - Finding turnkey properties - The right amount of properties. - The strategy to get them free and clear - The strategy to get passive income

Transcript of 13.3 Years to Build $1M in Real Estate Assets

13.3 Years to Build $1M in Real Estate Assets

&Enough passive income to never have to work again.

Case Study: Mr. & Mrs. Smith

• Married couple in their mid 40s• Combined annual income of just under $200k• Available liquid capital of about $400k• Also own other investments (stocks, life

insurance, emergency funds, etc.)

How to Make a Million?

Pay close attention…

Step 1 – The PurchasePurchase 9 investment properties @ $150k per

property = $1.35M of Asset Value52 Properties can help you find turnkey

investment properties in this price range, just email us!

Step 2 – The Down PaymentPut Down 25% of the purchase price plus an

additional 2% for loan costs = $364.5k capital invested

The 2% loan costs is a conservative assumption. You can easily get loans at $0 cost. This comes out to a down payment of $40,500 per property

Step 3 – The LoanTake out a conventional loan for 75% of the

asset value purchased = $985.6kThis equates to a loan of about $112,500 per

propertyFinance the debt for 15 years @ 4% interest

fixedToday’s rates for 15 years are actually lower so

you wouldn’t need as much capitalAmount of Principal paid down after first year:

$48,699 (this goes up every year)

Step 4 – Positive Cash FlowAdditional positive cash flow generated

annually: $8,100Tempting to spend this money but our focus here

is the long termWhen this cash flow is used to accelerate the

debt payoff, the entire portfolio is free and clear in 13.3 years! At this point Mr. & Mrs. Smith are in their late 50s

and have the option for early retirement

The Results…At zero appreciation, that’s $1.35M in free and

clear real estate, after a capital investment of only $364,500

At 3% annual appreciation (rate of inflation) that’s $2M in free and clear real estate.

Bonus: Each free and clear property also yields $11-12k/year in positive cash flow for a projected income of $100k/year

Double Bonus: If rent appreciates at 3%, this would yield around $145k per year

The model is flexible…Don’t have $400k? This model will work for as

little as $50k however the total assets and passive income will be less

Careful planning and smart real estate purchases has brought the Smith family early retirement so they can live a life of abundance and fulfillment.

About 52 Properties52 Properties is the place investors find weekly

deals on turnkey off-market investment properties yielding 7-12% ROI or between $500-$2000 of passive income per month per property. We will never email you more than once a week or share your information.

Learn more at www.52properties.com