Seasons Change and so should you

Barry Mathis – Gets Results 916.225.7777

There is a time for everything and a season for every activity under the heavens: ….

Ecclesiastes 3

Barry Mathis – Gets Results 916.225.7777

A rising tide raise all ships

Before After

Fix and Flip

Purchase Price = $ 250,000

Improvements = $50,000

Out of Pocket = $300,000

Fix and Flip

Purchase Price = $ 250,000

Improvements = $50,000

Out of Pocket = $300,000

Sales Price Target = $400,000

Accepted Offer = $384,000

Gross Profit = $84,000

Fix and Flip

Cost of Funds = $5,000

Title & Escrow Fees = $3,840

Commissions = $ 23,040

Capital Gains Tax = $18,850

Fix and Flip

Cost of Funds = $5,000

Title & Escrow Fees = $3,840

Commissions = $ 23,040

Capital Gains Tax = $18,850

Net Profit = $ 33,270

Internal Rate of Return = 11.09%

Fix and Flip

4 Months

Annual Return on Investment

ROI = 33.27 %

6 Months

Annual Return on Investment

ROI = 20.51 %

Buy and Hold

Purchase Price = $ 400,000

Down payment = $80,000

Loan Closing Cost = $8,000

Out of Pocket = $88,000

Buy and Hold

Monthly Payment (PITI) = $1869

Monthly Rent = $2,000

Monthly Cash Flow = $ 131

Buy and Hold

You spent $88,000 to get $1572 in Cash Flow

Your ROI from Cash Flow was 1.79%

{ $1572 divided by $88,000 = .017863 }

Buy and Hold

INTEREST DEDUCTION

You spent $88,000 to get $5698.95 in

deductions

Your ROI from Interest Deduction was 6.48%

Buy and Hold

PRINCIPLE REDUCTION

You spent $88,000 to get $5158 in loan pay

off

Your ROI from Principle Reduction was 5.86%

Buy and Hold

Asset Depreciation

You spent $88,000 to get $3840 in paper

losses

Your ROI from Depreciation was 4.36%

Buy and Hold

Asset Appreciation

You spent $88,000 to get $16,000 in gain

Your ROI from Appreciation was 18.18 %

Buy and Hold

ROI from Cash Flow = 1.79%

ROI from Interest Deduction = 6.48%

ROI from Payment Reduction = 5.86%

ROI from Asset Depreciation = 4.36%

ROI from Appreciation = 18.18%

Effective Total ROI = 36.67 %

HYBRIDs

Buy Ugly and Fix it up and then Move In

save 100% of the capital gains tax

(repeat every two years)

Buy Ugly – Fix and Hold for 1 year – Sale save up to 42% of the capital gains tax

Buy a multi unit complex and juice your

returns with less head ache

• You can do 3 of these with the same cash as a typical flip for nearly

100% ROI

Free Consultation

916.225.7777

Team of 4 Agents and 1 Full Time Admin for proven high volume and hands on support for your project

• Top 2 % of local agents

• 83.1 % Referral and Past

Client Repeat Business

• 77.5 % Investor Based

• My Listings outsell the

competition by more

than 14% on average