GOAL: To create a lifetime investment program.
Investment
Steps:
1. Determine investment goals.
2. Learn how to determine a good real estate investment.
3. Learn how to structure a no money down deal.
4. Purchase that first investment.
5. Learn how to manage that first investment.
6. Buy - Maintain - Sell real estate and mortgage paper.
Portfolio Steps: CHOICES
1. Create enough real estate investments to cover personal
real estate.
2. Hold enough real estate to eliminate income taxes.
3. Operate enough real estate for cash flow to cover car and
second home.
4. Invest enough to cover all utility expenses.
5. Create enough cash flow for life style.
6. Ensure financial stability by lowering loan to values.
7. Stability and choices.
GRAPH ANALYSIS:
| Appreciation = |
Rental Increases = |
| Loan Pay down = |
Income = $100.00 per unit |
MARKET VALUES ANNUALLY
| Building |
1 |
2 |
3 |
4 |
5 |
Equity |
| 1 |
$100,000 |
$105,000 |
$110,250 |
$115,763 |
$121,551 |
$21,551 |
| 2 |
|
$100,000 |
$105,000 |
$110,250 |
$115,763 |
$15,763 |
| 3 |
|
|
$100,000 |
$105,000 |
$110,250 |
$10,250 |
| 4 |
|
|
|
$100,000 |
$105,000 |
$5,000 |
| 5 |
|
|
|
|
$100,000 |
$0 |
| Totals |
$100,000 |
$205,000 |
$315,250 |
$431,013 |
$552,563 |
$52,563 |
| Appreciation Income |
|
$10,250 |
$15,763 |
$21,551 |
$27,628 |
|
|
ANNUAL RENTAL CASH FLOW
| Building |
1 |
2 |
3 |
4 |
5 |
Equity |
| 1 |
$1,200 |
$105,000 |
$1,400 |
$1,512 |
$1,633 |
$7,040 |
| 2 |
|
$100,000 |
$1,296 |
$1,400 |
$1,512 |
$5,407 |
| 3 |
|
|
$1,200 |
$1,296 |
$1,400 |
$3,896 |
| 4 |
|
|
|
$1,200 |
$1,296 |
$2,496 |
| 5 |
|
|
|
|
$1,200 |
$1,200 |
| Totals |
$1,200 |
$2,496 |
$3,896 |
$5,407 |
$7,040 |
$20,039 |
| Total Investment
Income |
|
$12,746 |
$19,658 |
$26,958 |
$34,668 |
$94,030 |
|
