High cash flowing properties with a plethora of steps taken to mitigate many of the risks typically associated with real estate investments. Ideal for Retirement accounts as an alternative to CD\'s at a much higher rate of return.
6. “ Behind the Exciting Show Window of Frenzied Wall Street Is an Endless Pageant of Obscure Tragedies”
7. “ Plans Go Glimmering in Thousands of Homes as Margins Melt and Savings of Lifetime Are Swept Away.”
8. We will show you how to turn THE HOUSING CRISIS into one of the best opportunities to make money in your lifetime!
9.
10. In the next few minutes we will show you how to increase the value of your investment account by 25% The First Year then predictably and securely earn 10% each year thereafter.
11.
12. Stocks Bonds Mutual Funds CD's Precious Metals REAL ESTATE Cash Flow ( YR) 0-2% 3-6% No 1-3% No 10% Purchase Under FMV No No No No No Yes Long Term Appreciation 8-10% No 8-10% No 6-8% 2-3% Tax Advantages No Sometimes No No No Yes Tangible Asset No No No No No Yes Ability to Create Value No No No No No Yes Social Good No No No No No Yes Leverage Potential 50% No No No No 80% Hedge Against Inflation No No No No Yes Yes Average After Tax Annual Return 8% 4% 8% 2% 5% 12%
13.
14.
15. Compound Interest CD's (2%/yr) Stocks (8%/yr) Real Estate (12%/yr) Age 30 $10,000.00 $10,000.00 $10,000.00 Age 40 $12,189.94 $21,435.89 $31,058.48 Age 50 $14,859.47 $46,609.57 $96,462.93 Age 60 $18,113.62 $100,626.57 $299,599.22 Age 70 $22,080.40 $217,245.21 $930,509.70 Age 80 $26,915.88 $469,016.13 $2,890,021.90
16.
17.
18. October 2008: 279,561 November 2008: 259,085 December 2008: 303,410 January 2009: 274,399 February 2009: 290,453 March 2009: 341,180
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38. Section 8 Investment Opportunity Summary (Income Statement) Total Investment: $54,000.00 Item Monthly Annually INCOME: Gross Potential Rent ($700 - $850/mo) $725.00 $8,700.00 Less Vacancy (assume 5% due to oversubscription) ($36.25) ($435.00) NET MONTHLY RENTAL INCOME $688.75 $8,265.00 EXPENSES: Insurance ($60 - $75/mo) $68.00 $816.00 Tax ($30 - $45/mo) $40.00 $480.00 Repair Expense Budget (assume 10% of Net Monthly Rental Income) $68.88 $826.50 Property Management (8% of Net Monthly Rental Income) $60.90 $730.80 NET MONTHLY EXPENSES $237.78 $2,853.30 CASH FLOW: NET CASH FLOW $450.98 $5,411.70 Cash-on-Cash Return (doesn't factor in appreciation or guaranteed 20+% built in equity upon purchase) 0.84% 10.02%
39. Section 8 Investment Opportunity Summary (Internal Rate of Return) Assumptions : Calculation: Purchase Price: $54,000 Year $ Appraised Value: $70,000 0 ($54,000) Hold Time (years): 5 1 $ 5,411.70 Cost of Sale (% of Sales Price): 7% 2 $ 5,411.70 Appreciation (%): 2% 3 $ 5,411.70 Annualized Cash Flow: $ 5,411.70 4 $ 5,411.70 5 $77,287.36 Annualized Internal Rate of Return (IRR): 14.94% IRR (assuming NO appreciation): 13.18%
40. Retirement Income Purchase Price: $54,000 Rental Income (per mo): $450 Number of Homes 1 5 10 15 20 Total Investment Amount $54,000 $270,000 $540,000 $810,000 $1,080,000 Net Monthly Rental Income $450 $2,250 $4,500 $6,750 $9,000
47. Will you be part of it? Contact me: Mike@MWLFinancial.com
Notes de l'éditeur
On your investments. It works with your CD’s, IRA’s or 401K’s if they are self directed.
Info from http://www.realtytrac.com/foreclosure/overview.html
Explain – the cycle. Going to miss it if you wait for main stream news. Best news at down slope. Worst doom and gloom at upturn.
Housing is a cyclical business – builders and investors and homeowners make far more in the good times than bad – but overall do well. That doesn’t make the bad times any better. Over the next few years records of homebuilders, developers, and homeowners will file for foreclosure and bankruptcy. Those who took less risk by keeping their debt levels low will be fine. Those who didn’t will learn their lesson and be more careful next time. Housing is cyclical. We are in a period of market correction. We will get through it – just give it time. Since 1970 there have been 4 of these cycles. In early 1970s mortgage rates rose from 7.5% up to 10% and unemployment rate rose to 9%. Times were tough…worse than today. Recovered in a few years Early 1980s Oil rose significantly and inflation exceed 11% and mortgage rates exceeded 17%. Unemployment rate was 10.8%. A few years later, everything was back to normal. 1987 to 1991 downturn was long and painful. Primarily caused by policies created in Washington DC. Downturn started with a change in tax codes that wiped out real estate investment tax benefits. Oil crisis cause job loses in many areas. Govt officials wiped out the savings and loan industry by implementing severe lending restrictions overnight. Defense spending was cut causing major job loses. Mortgage rates fell, but too late to help. Various regions of the country got hit harder and recovered at various times. Recovered nicely a few years later. This downturn is different. Some aspects are the same, some are different. To explain, look at 3 different aspects. Demand, Supply, Investment. Demand driven by adult population growth. Job growth is the best way to measure this. Supply In 2005 – too many homes were built. They over estimated how many homes were needed. Why did we build so much? In 2001 – stock market boom and technology bubble the US economy was heading into a recession. The fed decided to make the recession mild by proactively dropping interest rates, which then dropped mortgage rates, which essentially comes does to the Fed used the housing market as a tool to prop up the economy. We should have had a minor housing correction in 2002, but thanks to the Fed we did not. The fed let house prices grow out of control before taking action and raising rates. In places like San Diego, home prices rose over 200% from 2001 to 2005. Speculative investors started bidding up home prices and builders and investors made a fortune selling far more than they thought they would. Rates started rising in 2004 but it did not go up fast enough. Then lenders started giving loans to people with no money, no income and poor credit and prices rose even further. These homebuyers took a gamble and it will not pay off. It looked like the aggressive lending would go on for ever so the demand for housing seemed like it would go on forever and now we have too many homes. Over the last few years, people who bought homes were able to buy earlier than they thought and people moved up to bigger and better homes sooner. We essentially borrowed buyers from the future. We just need to let the economy continue to grow. Investment. You can have a ton of demand, but people need to be able to afford the housing. Although mortgage rates are low as compared to history, but have risen since 2004. High prices and raising mortgage prices are a recipe for a soft market. On top of that people are neverousNewspapers, media, and cocktail talk are gloom and doom and make real estate seem like a bad investment. Today people are nervous about investing in properties. When will all of this be over? It’s not as bad as the media makes it seem. What would make a good housing market? Good economy with solid job and population growth - YES A lot of home equity available for a down payment - YES Low mortgage rates - YES Good consumer confidence- YES Low levels of new home competitor - ???? Affordable homes - NO Homes are much less expensive than a year ago. People will always need a place to live. If you work as hard as you possibly can during this downturn, you will position yourself to take advantage that opportunities that will emerge and make it though it successfully. Every down cycle is the beginning of the next up cycle.
Housing is a cyclical business – builders and investors and homeowners make far more in the good times than bad – but overall do well. That doesn’t make the bad times any better. Over the next few years records of homebuilders, developers, and homeowners will file for foreclosure and bankruptcy. Those who took less risk by keeping their debt levels low will be fine. Those who didn’t will learn their lesson and be more careful next time. Housing is cyclical. We are in a period of market correction. We will get through it – just give it time. Since 1970 there have been 4 of these cycles. In early 1970s mortgage rates rose from 7.5% up to 10% and unemployment rate rose to 9%. Times were tough…worse than today. Recovered in a few years Early 1980s Oil rose significantly and inflation exceed 11% and mortgage rates exceeded 17%. Unemployment rate was 10.8%. A few years later, everything was back to normal. 1987 to 1991 downturn was long and painful. Primarily caused by policies created in Washington DC. Downturn started with a change in tax codes that wiped out real estate investment tax benefits. Oil crisis cause job loses in many areas. Govt officials wiped out the savings and loan industry by implementing severe lending restrictions overnight. Defense spending was cut causing major job loses. Mortgage rates fell, but too late to help. Various regions of the country got hit harder and recovered at various times. Recovered nicely a few years later. This downturn is different. Some aspects are the same, some are different. To explain, look at 3 different aspects. Demand, Supply, Investment. Demand driven by adult population growth. Job growth is the best way to measure this. Supply In 2005 – too many homes were built. They over estimated how many homes were needed. Why did we build so much? In 2001 – stock market boom and technology bubble the US economy was heading into a recession. The fed decided to make the recession mild by proactively dropping interest rates, which then dropped mortgage rates, which essentially comes does to the Fed used the housing market as a tool to prop up the economy. We should have had a minor housing correction in 2002, but thanks to the Fed we did not. The fed let house prices grow out of control before taking action and raising rates. In places like San Diego, home prices rose over 200% from 2001 to 2005. Speculative investors started bidding up home prices and builders and investors made a fortune selling far more than they thought they would. Rates started rising in 2004 but it did not go up fast enough. Then lenders started giving loans to people with no money, no income and poor credit and prices rose even further. These homebuyers took a gamble and it will not pay off. It looked like the aggressive lending would go on for ever so the demand for housing seemed like it would go on forever and now we have too many homes. Over the last few years, people who bought homes were able to buy earlier than they thought and people moved up to bigger and better homes sooner. We essentially borrowed buyers from the future. We just need to let the economy continue to grow. Investment. You can have a ton of demand, but people need to be able to afford the housing. Although mortgage rates are low as compared to history, but have risen since 2004. High prices and raising mortgage prices are a recipe for a soft market. On top of that people are neverousNewspapers, media, and cocktail talk are gloom and doom and make real estate seem like a bad investment. Today people are nervous about investing in properties. When will all of this be over? It’s not as bad as the media makes it seem. What would make a good housing market? Good economy with solid job and population growth - YES A lot of home equity available for a down payment - YES Low mortgage rates - YES Good consumer confidence- YES Low levels of new home competitor - ???? Affordable homes - NO Homes are much less expensive than a year ago. People will always need a place to live. If you work as hard as you possibly can during this downturn, you will position yourself to take advantage that opportunities that will emerge and make it though it successfully. Every down cycle is the beginning of the next up cycle.