13.3 Years to Build $1M in Real Estate Assets
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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 Purchase Purchase 9 investment properties @ $150k per property = $1.35M of Asset Value 52 Properties can help you find turnkey investment properties in this price range, just email us!
- Step 2 The Down Payment Put 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 Loan Take out a conventional loan for 75% of the asset value purchased = $985.6k This equates to a loan of about $112,500 per property Finance the debt for 15 years @ 4% interest fixed Todays rates for 15 years are actually lower so you wouldnt need as much capital Amount of Principal paid down after first year: $48,699 (this goes up every year)
- Step 4 Positive Cash Flow Additional positive cash flow generated annually: $8,100 Tempting to spend this money but our focus here is the long term When 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, thats $1.35M in free and clear real estate, after a capital investment of only $364,500 At 3% annual appreciation (rate of inflation) thats $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 Dont 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 Properties 52 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