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 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
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