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Now, when you buy a
nice little house thats going a little cheap which you would
like to rehab and sell, your exposure is never counted as your
full buying price. If you put down $5k as a down payment and
another $5k as legal expenses and another $5k for the clean up
and paint job, then your exposure is $15k not the whole value of
the house.
When you sell that
little house for a $20k profit above all costs, your return is
measured against the risked funds, not the full value of the
house.
So you risked $15k to
get that back AND the $20k profit. That means your return on
investment was 130% Now get your calculator out again and try
typing 10,000 multiplied by 2.3 (which is equivalent to
%130)over 10 years. The difference is staggering. $41 and a half
million. Over 30 million more then the first calculations. Just
by adding that 30%
What if 200 or 300 %
per year could be achieved? Well I will let you do the
calculator punching, but my guess is you will get error messages
on your calculator screens before you got to the tenth year
because the numbers got so big so quickly.
Yet, that is
absolultely possible.You dont need to find unbelievable deals
and big time buyers to make these returns. You see, another way
of jacking up the compounder is to reduce the money risked to
acheive the same results.
For example in the
first case we risked $15k for a return of $20k What if we
managed to get the same result, the $20k but only risk $2k? how
would that increase our compounder? DRAMATICALLY!!! This $2k
investment for a return of $20k represents 1000% per year.
We still have $13,000
left in our bank account that we can do another 6 and a half
other deals because now we are doing deals that deliver $20k
returns for just $2k risked.
Try multiplying
$10,000 by 1000% or just multiply it by 10 for 10 years. You
cant, your calculator jams after about 4 years.
What if you could do
no money down deals?
What if you learned
exactly how its done, and perfected it so you never need to find
a cent to deal in real estate? Thats the meaning of astronomical
returns. It cannot be calculated. Thats the meaning of
non-exposure. You cannot lose what you havent put in. Its called
being bullet proof. A man that knows how to do this is a sure
bet to be wealthy very soon.
May success find you
fast and knowledge find you sooner
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Martin Thomas is a professional investor and author. He
enjoys sharing his insights about his own journey. If you want
to see how Martin got involved in Real Estate and what he did in
the early days and the knowledge he found and where he found it.
Click on this link http://www.opportunity-investor.com/investin2.html
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