We believe leveraging is the single most powerful strategy in real estate.
This is achieved by using the banks or OPM (other peoples’ money).
When you buy a house and move into it, you can get in with as little as 5% down. Then later you could turn it into an income property.
Normally, to acquire an income property, you would have to invest 20% of the value of the property for a downpayment (which is a ratio of 4-1) but 5% down is a ratio of 20-1! This way you are only using a very small amount of your money and borrowing the rest. This means that if you invested $15,000 and the property went up $15,000 in value, you have made a 100% return on your money. There are not many places in life where you could get this kind of return using mostly other people’s money.
You can use this powerful strategy up to 4 times! Putting 5% down each time. If you move into any property with 5 or fewer apartments you can purchase it for 5% down. Legally suited, Full-duplex, Triplex, 4 Plex, 5 plex, acreages, townhouses, condos, and single-family houses all apply for this strategy.
There’s even one better...If you have amazing credit, you can actually purchase a home with as little as 2% down. This makes it a ratio of 49-1 ratio, not just 19-1.
Free real estate investment education at
No comments:
Post a Comment