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m (New page: Five Steps To Wealth Through Real estate investment Not only can youbecome quite wealthy by purchasing real estate (whether or not the value of the property never rises)... you ought to...) |
Current revision (18:32, 14 August 2012) (view source) m (New page: Five Steps To Wealth Through Real estate investment Not only can youbecome quite wealthy by purchasing real estate (whether or not the value of the property never rises)... you ought to...) |
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Five Steps To Wealth Through Real estate investment
Not only can youbecome quite wealthy by purchasing real estate (whether or not the value of the property never rises)... you ought to be in a position to.
5 step formula to wealth through real estate investment is:
1) Purchase income producing property at below market value prices
2) Buy (leverage) and hold additional properties over time
3) Have your real estate professionally managed
4) Properly direct the money flow out of your investment properties
5) Become financially secure and wealthy over time
It's that easy because... Purchasing property provides a vehicle and opportunity which really has no peers. It's in its own category. Real estate provides leveraging opportunities, financing and tax benefits that other investments (stocks, bonds, CD's, etc.), by law, aren't allowed to offer.
And investing in property offers another thing the others don't typically provide: a predictable cash flow that commences rigtht after a property purchase.
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This type of investing has existed for many years. When executed properly, it's reliable, predictable and lucrative. It might appear complex initially but is actually a significant simple and straightforward process once familiar. After the correct resources have been in place and purchases completed, there are very few "moving parts." It functions similar to it's with an auto pilot with good property management.
A particular perspective and understanding is certainly necessary. Just how much property a person owns isn't the primary aim or focus. What's most important is how much income the properties generate which is determined by factors for example: purchase price, renovation expenses, fees, rents, property management costs, mortgage reduce rate, etc. Naturally, you need to understand the variables as being knowledgeable encourages effectiveness which can then be replicated over and over. It becomes a method, which in many ways, functions like franchising fast food restaurants.
NOTE: There are a few other necessary ingredients related to this investment model: 1) to have a genuine need to become wealthy which helps to build up your 2) vision and investment goals, 3) a level of patience and 4) discipline which enables your 5) long-term plan for success by managing your cash flow properly... Here is a very general illustration of a long term goal and just how it really works:
Consider if you had been able to get one apartment per year for 15 years (think leveraging). In case your fifteen properties were producing typically $700 per month each in rental income, after the fifteenth year, you'd be getting a collective cash flow of $10,500 monthly. Now that you've been carrying this out for any short while coupled with been disciplined, that cash could now be directed towards your own living expenses (retirement perhaps) or for reinvesting purposes.
Also remember, that if you bought the homes with fifteen year mortgages (which we recommend), the homes purchased in the earlier years are beginning to be repaid. So not just are you currently finding the average $700 monthly from each property, you're also becoming the owner of an increasing number of homes that no longer have mortgages should you obtained financing. They're starting to become yours outright.
Plus, yet, another possible benefit: there is a quite strong likelihood that your properties also have appreciated in value through the years.
So now you, the focused, patient, disciplined property investor, have obtained:
- Built-in equity immediately because of an under market price purchase
- Positive monthly income throughout
- Mortgage principle pay down through the years
- Outright property ownership once mortgages paid
- Highly likely property value appreciation over time
Certainly, this isn't enough information to equip you to immediately begin purchasing property. The intention is to share highlights from the income producing investment model to you and generate some understanding of its possibilities.
Only about 5% of our country's population becomes wealthy or financially independent inside their lifetimes. We'd like everyone so that you can live their lives within that 5% and to enjoy what it really has to offer. It's available.
