Friday, September 12, 2008

Using Real Estate To Add $150K+ To Your Net Worth

Boy, does the title of this article sound like a great, late night infomercial or what….. Can't you just see images of fancy cars, people laying on the beach, expensive homes, and all the other ways these promoters try to get you to sign up for their 3 easy payments.

Now, what about a steady get wealthy program for the rest of us? Suppose I could show you a method to:

Increase your net worth by $150,000+ each year;

Take on minimal risk; spend only a few hours per week; and increase your rate of wealth production over time.

Would you be interested? Probably the answer is HECK YES!!!! But are you really interested? I will let you be the judge.

First, let me state that what I am about to discuss is really geared for those individuals that have some disposable income and good credit; i.e., the bulk of middle to middle/upper class America. If you have poor credit or are strapped for cash, then I suggest you solve those issues first and then consider implementing this strategy.

Next, let me also state that what I am about to suggest is as exciting as watching corn grow in Nebraska; however, what any professional investor will tell you is that if your investing is exciting and really gets your blood pumping, then you are doing it wrong!! Instead, what you want is a clear game plan on how to succeed, grow and when an opportunity fits your game plan, you immediately pounce to make it happen.

So, what if I could show you some exotic opportunity that had the following characteristics:

$16,058 Cash Required To Purchase; · Expected Gain In 5 Years: $83,000 Initial Due Diligence Time: 15 Hrs Hours Per Year: 20 Hrs Very Low-Risk

Now, suppose I gave you the opportunity to do this investment twice, thus making the expected gain $166,000, in 5 years. Now, suppose you plan to invest this way once every year. That means during Year 1, you would need $32,000 in cash and in Year 2, you would need the same as well. However, after Year 2, you were now able to recover your original cash inputs and reinvest it for years, 3, 4, 5, … What you have just created now is a perpetual wealth building machine.

Sound Good?

When presented this way, most people would agree that this sounds good. But, in reality, we know that MOST PEOPLE WILL WALK AWAY FROM THIS OPPORTUNITY. So, suppose I presented such an opportunity to somebody not used to investing. Let's see how a typical conversation would go.

New Investor: Sounds interesting but how do I know it will do what you say?

Chris: You don't…. Nobody can predict the future but you can look at hard numbers to see if the assumptions make sense to you. Even though this is not a guarantee, it is LIKELY to occur or may be even better than predicted.

New Investor: But this takes a lot of time to look into and understand.

Chris: Realistically, we all have some extra time available and in reality, to analyze just a few (1-5) deals a year is not hard. But let's put this in dollars and cents terms. From above, it appears that we could make $166,000 for about 150 Hrs total work…. Or $1,106/Hr. That is not "bad grits" as we say here in the south.

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