Let's Look at
Compound
Leverage!!!
In this example, we see our
investor compare the value
over time of investing in one
property over 30 years using all cash, or using the
same amount of cash to
purchase two properties in
The Short Term Retirement
program, using our innovative, turnkey, non qualifying
system. Remember! THIS IS
THE EXACT SAME PROPERTY WITH THE SAME
OPERATING NUMBERS!
PLEASE NOTE: THIS EXAMPLE ONLY DOUBLES THE
RETURNS AT THE BOTTOM
OF EACH EXAMPLE, AND
DOES NOT BREAK DOWN
EXPENSES.
1318 Briarwood Street,
For Sale: $39,000
Market Value: 60k(Today)
Rent: $695(Current rent)
City/County Taxes: $78/
month(2009 values)
Insurance: $50/
month(est.)
Management(8%): $56
Net Monthly Cash Flow:
$511/month
Please Note:
These examples DO NOT
factor in vacancy, maintenance, appreciation, or rental increases. These numbers can vary over time, depending on market volatility, etc. EXAMPLES PROVIDED FOR INFORMATIONAL PURPOSES ONLY!!!!
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Example 1:
Using All Cash to
Purchase One
Property |
Example 2:
Using Bank Financing to Purchase
Two Properties |
Example 3:
Using Our Program
to
Purchase TWO
Properties, WITH
THE SAME AMOUNT
OF CASH AS IN EXAMPLE 1 |
Single Property
Purchase
Here is how the property at
1318 Briarwood would look,
using ALL CASH, if a new
investor purchased a single
property. Assume about
$3200 in costs to close(insurance, attorney fees, etc.) for a
total purchase price of
$42,200.
1318 Briarwood Street
Market Value: 60k (Today)
Rent: $695 (Current rent)
City/County Taxes: $78/month
(2009 values)
Insurance: $50/month(est.)
Management(8%): $56
Less Mortgage Payment:
NONE
Net Monthly Cash Flow:
$511/month
Cash Needed to Close: 42k
1 Year Cash on Cash: 15%
5 Year Net Gain: $30,660
Interest Paid: 0
Years Until Payoff: N/A
Total 30 Yr. Net:
$183,960
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DualProperty
Purchase
Here is how the property at
1318 Briarwood would look,
using Institutional based bank
financing, if an investor purchased TWO properties.
Assume a 20% down payment
and about $5200 in costs to
close(insurance, attorney fees,
etc.) for a total purchase price
of $44,200. 7.5% interest.
1318 Briarwood Street
Market Value: 60k (Today)
Rent: $695 (Current rent)
City/County Taxes: $78/month
(2009 values)
Insurance: $50/month(est.)
Management(8%): $56
Less Mortgage Payment:
$235/month (30 yr.)
Net Monthly Cash Flow:
$276/month
Cash Needed to Close: 11k
1 Year Cash on Cash: 30%
5 Year Net Gain: $33,120
Interest Paid: $101,346
Years Until Payoff: 30
Total 30 Yr. Net:
$198,720 |
DualProperty
Purchase
Here is how the property at
1318 Briarwood would look,
using The Short Term Retirement Program, if an investor
purchased TWO properties.
Assume a 50% down payment
and about $3200 in costs to
close(insurance, attorney fees,
etc.) for a total purchase price
of $42,200.
1318 Briarwood Street
Market Value: 60k (Today)
Rent: $695 (Current rent)
City/County Taxes: $78/month
(2009 values)
Insurance: $50/month(est.)
Management(8%): $56
Less Mortgage Payment:
$472/month(5 yr.)
Net Monthly Cash Flow:
$39/month(For 5 Years)
Cash Needed to Close: 42k
1 Year Cash on Cash: .02%
5 Year Net Gain: $4,680
Interest Paid: $14,694
Years Until Payoff: 5
Total 30 Yr. Net:
$311,280
(169% Gain
Over ALL CASH!!!)
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