Real Estate Investing For Leverage
February 5, 2010 by Kenny Santos
Filed under Real Estate Investing
The term leverage in the world of finance is defined as borrowing money to purchase a company and relying on it to produce enough capital to cover the interest payable on the loan. This is the type of leverage that investment in real estate properties provides.
You do not have to be rich to invest. The goal, of course, is to make money for the long term. The principle is rather simple: spend a little to make a lot. Take the $10,000 you have accumulated in equity, use it as a down payment on an investment property that has a positive cash flow, use the cash flow to pay the mortgage and your investment will appreciate into ten times the original amount over time.
It is interesting to note that after you have invested in a property; your net worth has increased substantially from your initial investment. Let?s take that $10,000 and buy a piece of property with a fair market value of $100,000. The $10,000 is 10% of the value and makes a nice down payment. The mortgage is now $90,000 and you have equity of $10,000. Your net worth has increased by $90,000.
Let?s say the property produces a cash flow of $900 per month. The monthly note on a 30-year loan at 7% is only $598. Your positive cash flow is $302. If you paid all the cash flow into the monthly payment, and if you bought the property in 2006, you would have the property paid off in 2019 ? 13 years ? and the interest you save would be over $121,000.
There are two directions you could go. One is to buy and hold. This means that you buy this property and you hold on to it with everything you have. It absolutely should increase in fair market value. You should see increases in cash flow. You could add these increases to your note and then you could be realizing in a short period of time a nice, regular income from this piece of property. That retirement nest egg would be actively working for you over numerous years until retirement and through retirement.
If you think you do not have the time between now and when you want to retire, think again. The other direction may be for you. You could build some equity in the property we talked about above. Then you could trade up using the equity you built in making double payments and investment tax incentives.
You should always trade up in value or equal in value in order to benefit from the tax savings. When you take this route, you will actually be raising your net worth by much more than equity because you will be steadily increasing your net worth by more than just the cash flow from your investment.
If you were to take the fast-track accumulated equity you have built by paying double or triple the principle each month and trade up to a property worth $200,000 rather than $100,000, you could double your cash flow and pay off the mortgage in 16 years. That would give you a hefty cash flow at retirement with a very small initial investment.
About the Author:
Investment Property Specialist - Alex Anderson Connects Real Estate Investors With High-Quality Investment Properties. Get A Free Copy Of, “The Investor’s Rental Guide” at: www.GreatInvestmentProperty.com
Buying Pre-Foreclosure Homes Can Be Your Very Lucrative Real Estate Investing Niche
January 9, 2010 by Kenny Santos
Filed under Real Estate Investing
Buying real estate at a discount to the fair market value is one of the important ingredients to making the most money in today?s housing market. One of the best investing niches to buy at a discount is buying a pre-foreclosure home.
Why is buying a pre foreclosure such a good deal?
First of all, pre-foreclosure is the period of time between when the lender files a foreclosure lawsuit or notice of default against the property owner and the date the property is sold at a public auction or trustee?s sale.
During this period of time the home owner still controls his property. He can bring his mortgage current and stop the foreclosure process or he can sell the property to save his credit profile from having a foreclosure notice attached to it. He can pay off the loan he can no longer afford to make payments on and perhaps have some equity left over in the property to put some cash in his pocket.
The pre-foreclosure period is the first and best stage in the foreclosure process to buy a property at a discount because you, the investor, can do three important tasks to maximize your profits:
This is ideal compared to the following stages in the foreclosure process, namely, the public auction and post-foreclosure stage.
The public auction stage can carry more risk to the investor as well as disappointment. There is more competition at the public auction and so the price may be bid up beyond your top bid price for the property. You also need to come with cash in hand in the form of cashier?s checks to buy the property. Then there is the disappointment of being told the sale has been cancelled. This is typically due to some legal maneuvering by the home owner such as filing for bankruptcy protection to stall the sale.
The last stage of post-foreclosure occurs when there are no successful bids at the auction. The lender takes the property back and it becomes what is commonly known as ?real estate owned? or an REO. At this point many lenders will list the property with a local real estate broker at fair market value depending on the condition of the property. The lender may even choose to rehab the property to obtain a higher sales price. The likely type of buyer at this point is someone wanting a personal residence or an investor that will buy and hold.
What skills do you need to buy a pre-foreclosure property for the most profit?
With so much opportunity in pre-foreclosures you should be highly motivated to learn all you can about the skills needed to be successful in this real estate investing niche. There are a number of skills you need to develop to be successful.
One very important skill or method you must develop is the ability to locate the pre-foreclosure listings before the rest of the eager investor competition does.
Now you can find these properties for free if you go down to the county courthouse yourself and research the public records. This is time-consuming, however, and the information you?ll gather is very basic. Highly successful investors use other methods and strategies they have developed to locate distressed home owners and pre-foreclosure lists. These include:
Foreclosure Subscription Services:
Foreclosure subscription services provide pre-foreclosure property listings. However, not all listing services are the same. There can be a vast range in two critical areas:
[1] How fast they notify you of new listings. The best services should have listing information to you in a matter of days, not weeks. [2] How comprehensive the information is that they gather. You need more than an address, the loan the default has been recorded on and basic property information, to make informed investment decisions. The best services will also provide you with such information as any other loans against the property and local comparable sales.
Strategies of getting the distressed home owner to call YOU for help and ready to make a deal
There are successful methods of contacting the home owner of a pre-foreclosure that involve mailing them or calling them or leaving something on their doorstep. You need to develop the skill to write and deliver a message to the home owner that will get their attention and get them to call you instead of a competing investor.
Better yet, if you can get a home owner to call you before the notice of default is even filed, you?ll be way ahead of the pack of competing investors. This is really a very special skill that the most successful investors have developed.
This is just one of the skills you need to develop. Others include property evaluation skills such as crunching the numbers to calculate potential profits and knowing how to inspect the property to determine the condition and what repairs need to be made and how much they will cost. You need good communication skills when talking to the home owner to build trust and make a connection so you can negotiate successfully with them. You also need skills in drafting the purchase contract with the proper clauses to protect your interest to avoid getting stuck with a property that turns out not to be a good deal upon further investigation.
How to learn the skills to be a successful investor
If you haven?t developed these skills and don?t know where to start, I recommend you find a real estate investor mentor. Find someone in your local area who is already successful in pre-foreclosure investing and ask if they will coach you. They will need an incentive, of course. Maybe they need someone to do some grunt work because of time constraints. Then be their grunt and keep your eyes and ears open at all times and be a sponge. In time you will develop the skills and strategies needed to be highly successful in the lucrative niche of buying pre-foreclosure homes.
What to do if you don?t have a local real estate mentor to help you
If you don?t have a local real estate mentor, the next best thing is working with a ?virtual? mentor. Many of the best and most successful investors in pre-foreclosures have written step-by-step guides to help someone just getting started or someone who wants to improve their skills to make even more money. So find yourself a mentor, either in your area or a ?virtual? mentor and start learning how to make money in pre-foreclosure homes.
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Naomi Monk has provided a Real Estate Investing Learning Center on her website featuring ?virtual? mentors waiting to help you. To learn quickly and easily the skills you need to become highly successful in finding and buying pre-foreclosure homes for maximum profit click here now: Real Estate Investing in Pre-Foreclosures |
Real Estate Investing For Leverage
December 25, 2009 by Kenny Santos
Filed under Real Estate Investing
The term leverage in the world of finance is defined as borrowing money to purchase a company and relying on it to produce enough capital to cover the interest payable on the loan. This is the type of leverage that investment in real estate properties provides.
You do not have to be rich to invest. The goal, of course, is to make money for the long term. The principle is rather simple: spend a little to make a lot. Take the $10,000 you have accumulated in equity, use it as a down payment on an investment property that has a positive cash flow, use the cash flow to pay the mortgage and your investment will appreciate into ten times the original amount over time.
It is interesting to note that after you have invested in a property; your net worth has increased substantially from your initial investment. Let?s take that $10,000 and buy a piece of property with a fair market value of $100,000. The $10,000 is 10% of the value and makes a nice down payment. The mortgage is now $90,000 and you have equity of $10,000. Your net worth has increased by $90,000.
Let?s say the property produces a cash flow of $900 per month. The monthly note on a 30-year loan at 7% is only $598. Your positive cash flow is $302. If you paid all the cash flow into the monthly payment, and if you bought the property in 2006, you would have the property paid off in 2019 ? 13 years ? and the interest you save would be over $121,000.
There are two directions you could go. One is to buy and hold. This means that you buy this property and you hold on to it with everything you have. It absolutely should increase in fair market value. You should see increases in cash flow. You could add these increases to your note and then you could be realizing in a short period of time a nice, regular income from this piece of property. That retirement nest egg would be actively working for you over numerous years until retirement and through retirement.
If you think you do not have the time between now and when you want to retire, think again. The other direction may be for you. You could build some equity in the property we talked about above. Then you could trade up using the equity you built in making double payments and investment tax incentives.
You should always trade up in value or equal in value in order to benefit from the tax savings. When you take this route, you will actually be raising your net worth by much more than equity because you will be steadily increasing your net worth by more than just the cash flow from your investment.
If you were to take the fast-track accumulated equity you have built by paying double or triple the principle each month and trade up to a property worth $200,000 rather than $100,000, you could double your cash flow and pay off the mortgage in 16 years. That would give you a hefty cash flow at retirement with a very small initial investment.
About the Author:
Investment Property Specialist - Alex Anderson Connects Real Estate Investors With High-Quality Investment Properties. Get A Free Copy Of, “The Investor’s Rental Guide” at: www.GreatInvestmentProperty.com
The Benefits of Real Estate Investing
December 6, 2009 by Kenny Santos
Filed under Real Estate Investing
Real estate investing is increasing at a staggering rate these days. More and more individuals are learning that real estate investments can offer wonderful earning potential. Real estate investing is a process which has many attractive qualities that make it a viable money-producing opportunity. There are a number of benefits that go along with purchasing real estate investments and the following paragraphs will highlight some of these benefits. As you will see these attributes make it quite apparent why individuals are becoming interested in investment opportunities of this type.
Build Equity in the Property For those individuals who are looking to invest in real estate on a long-term scale, there are certain benefits to doing so. When individuals purchase real estate and hold onto it for awhile, they are ultimately able to build a good deal of equity in the home they are purchasing as an investment property. Equity is a beneficial aspect for the homeowners as the more equity a property has, the more that it adds to the net worth thereof. This is an important and frequently cited reason why individuals do choose to invest in real estate and maintain the property as an investment for a long period of time thereafter.
Possible Tax Advantages Another benefit of purchasing real estate for investment purposes is the possible tax advantages that one may receive as a result of owning the investment property. Depending on a variety of factors, individuals who own investment property may just see some gracious tax advantages as a result. Therefore, individuals may be more than ready to invest in real estate once they have looked into possible tax advantages that result from engaging in a transaction of this type.
High Rate of Return on the Sale of the Property When the investment property is sold somewhere down the road, the homeowners will most likely see a high rate of return on the sale of the property. Depending on the market at the time of the purchase and sale, this rate of return may be more than generous when one looks at the profit margin. Some factors to consider if looking to purchase property and sell it within a short period of time after the initial purchase include current market for property sales, renovations and upkeep necessary to get the property ready for the sale and ability to hold on to the property longer if a sale does not come as quickly as one had expected. If one has considered all of these possibilities and still feels that they will be able to sell the property quickly, then this is a wonderful benefit of real estate investment.
Lease the Property to Tenants While some real estate investors choose to purchase the property and then sell it shortly thereafter, there are other individuals who have a different reason for purchasing investment properties and wish to obtain a profit by other means. These individuals are ones who prefer to purchase the property and then lease it out to tenants. By doing so, the homeowners are able to pay for any mortgage which may be present on the property plus receive any additional income from leasing the property to tenants.
Investing in real estate is a wonderful way to gain equity in a piece of property, take advantage of possible tax benefits and maybe even make a considerable profit from the sale of the property once the individual feels like doing so. These are some of the many reasons why individuals are purchasing real estate as investment property and current low interest rates make now a perfect time to buy. The benefits of real estate investing are difficult to pass up, so go ahead and find your first real estate investment property!
About the Author
Ken Smith is a real estate agent that runs one of Chicagolands top real estate teams. He has also started <A href=”http://www.webnewsforus.com/blog/”>WebNewsForUs.com, a site that is dedicated to real estate agents learning to use their websites to grow a profitable business.
Real Estate Investing Advice
July 20, 2009 by Kenny Santos
Filed under Real Estate Investing
There are a lot of people investing in the real estate sector. While making an investment in this field one prime thing to consider is the location. The increase or decrease in the property value depends upon the location of the property. If the property is centrally located, then there would be an increase in price over the period of time as compared to property at isolated locations.
Prerequisites
For those who are serious about making an entry in the field below is some real estate investing advice. There are few things you would require to start:
- Capital to invest or a legal way to acquire that capital
- Detailed knowledge about the real estate market and the area where you are planning to purchase the house.
- Management and excellent negotiation skills are a must for buying the property at your affordable price.
- You should be capable of doing the repairs yourself or at least hire someone to do the repairs
- Please keep the contact information of the property inspector or an engineer who can help you determine flaws in the property.
Though it is not easy to find and acquire the property at reduced price during foreclosures or fix-uppers, you can easily become the proud owner of any property at its increasing rates. While renting be careful about to whom the property is rented out as property would need timely maintenance.
How To Start
Property investments are very expensive and there is capital requires for the same. A good real estate investing advice about how people start in the field is by selling off their own home and purchasing two smaller units with the amount of money acquired. As mentioned earlier location is the main factor that describes the profits of the field thus a lot of research before making an investment is essential. You may check the newspapers, internet, and local libraries and attend the city council meetings to know about the market. It is a safe real estate investing advice to looking into the future developmental plans of the property that you wish to purchase.
Investment Trusts
Another good real estate investing advice offered by experienced in the field is to start with the help of investment trusts. These would serve as a great method to start in the field with less investments and troubles associated with becoming the landlord. An investment trust is the company that invests in the various corporations involved in the real estate market. They range from the big shopping complexes to industrial parks. These are usually listed in stock exchange. The working of these investment trusts is quite similar to that of mutual funds the only difference is their portfolio of investing in the real estate sector. A bulk of their investments is distributed in the form of dividends to the investor. Few points to keep in mind while investing in the real estate investment trusts are:
- The financial health of the areas where the key holdings are located
- The performance of trusts and their future projections
- Trusts management?s track record
- The state of the real estate market
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James Klobasa, once broke with no job and $20,000 in debt made a choice that changed his life forever. That choice was investing in Real Estate. With the founder of, The Little Building Co. you too, can learn at Real-Real Estate Investing |
Real Estate Investing For Leverage
June 17, 2009 by Kenny Santos
Filed under Real Estate Investing
The term leverage in the world of finance is defined as borrowing money to purchase a company and relying on it to produce enough capital to cover the interest payable on the loan. This is the type of leverage that investment in real estate properties provides.
You do not have to be rich to invest. The goal, of course, is to make money for the long term. The principle is rather simple: spend a little to make a lot. Take the $10,000 you have accumulated in equity, use it as a down payment on an investment property that has a positive cash flow, use the cash flow to pay the mortgage and your investment will appreciate into ten times the original amount over time.
It is interesting to note that after you have invested in a property; your net worth has increased substantially from your initial investment. Let?s take that $10,000 and buy a piece of property with a fair market value of $100,000. The $10,000 is 10% of the value and makes a nice down payment. The mortgage is now $90,000 and you have equity of $10,000. Your net worth has increased by $90,000.
Let?s say the property produces a cash flow of $900 per month. The monthly note on a 30-year loan at 7% is only $598. Your positive cash flow is $302. If you paid all the cash flow into the monthly payment, and if you bought the property in 2006, you would have the property paid off in 2019 ? 13 years ? and the interest you save would be over $121,000.
There are two directions you could go. One is to buy and hold. This means that you buy this property and you hold on to it with everything you have. It absolutely should increase in fair market value. You should see increases in cash flow. You could add these increases to your note and then you could be realizing in a short period of time a nice, regular income from this piece of property. That retirement nest egg would be actively working for you over numerous years until retirement and through retirement.
If you think you do not have the time between now and when you want to retire, think again. The other direction may be for you. You could build some equity in the property we talked about above. Then you could trade up using the equity you built in making double payments and investment tax incentives.
You should always trade up in value or equal in value in order to benefit from the tax savings. When you take this route, you will actually be raising your net worth by much more than equity because you will be steadily increasing your net worth by more than just the cash flow from your investment.
If you were to take the fast-track accumulated equity you have built by paying double or triple the principle each month and trade up to a property worth $200,000 rather than $100,000, you could double your cash flow and pay off the mortgage in 16 years. That would give you a hefty cash flow at retirement with a very small initial investment.
About the Author:
Investment Property Specialist - Alex Anderson Connects Real Estate Investors With High-Quality Investment Properties. Get A Free Copy Of, “The Investor’s Rental Guide” at: www.GreatInvestmentProperty.com
The Benefits of Real Estate Investing
June 15, 2009 by Kenny Santos
Filed under Real Estate Investing
Real estate investing is increasing at a staggering rate these days. More and more individuals are learning that real estate investments can offer wonderful earning potential. Real estate investing is a process which has many attractive qualities that make it a viable money-producing opportunity. There are a number of benefits that go along with purchasing real estate investments and the following paragraphs will highlight some of these benefits. As you will see these attributes make it quite apparent why individuals are becoming interested in investment opportunities of this type.
Build Equity in the Property For those individuals who are looking to invest in real estate on a long-term scale, there are certain benefits to doing so. When individuals purchase real estate and hold onto it for awhile, they are ultimately able to build a good deal of equity in the home they are purchasing as an investment property. Equity is a beneficial aspect for the homeowners as the more equity a property has, the more that it adds to the net worth thereof. This is an important and frequently cited reason why individuals do choose to invest in real estate and maintain the property as an investment for a long period of time thereafter.
Possible Tax Advantages Another benefit of purchasing real estate for investment purposes is the possible tax advantages that one may receive as a result of owning the investment property. Depending on a variety of factors, individuals who own investment property may just see some gracious tax advantages as a result. Therefore, individuals may be more than ready to invest in real estate once they have looked into possible tax advantages that result from engaging in a transaction of this type.
High Rate of Return on the Sale of the Property When the investment property is sold somewhere down the road, the homeowners will most likely see a high rate of return on the sale of the property. Depending on the market at the time of the purchase and sale, this rate of return may be more than generous when one looks at the profit margin. Some factors to consider if looking to purchase property and sell it within a short period of time after the initial purchase include current market for property sales, renovations and upkeep necessary to get the property ready for the sale and ability to hold on to the property longer if a sale does not come as quickly as one had expected. If one has considered all of these possibilities and still feels that they will be able to sell the property quickly, then this is a wonderful benefit of real estate investment.
Lease the Property to Tenants While some real estate investors choose to purchase the property and then sell it shortly thereafter, there are other individuals who have a different reason for purchasing investment properties and wish to obtain a profit by other means. These individuals are ones who prefer to purchase the property and then lease it out to tenants. By doing so, the homeowners are able to pay for any mortgage which may be present on the property plus receive any additional income from leasing the property to tenants.
Investing in real estate is a wonderful way to gain equity in a piece of property, take advantage of possible tax benefits and maybe even make a considerable profit from the sale of the property once the individual feels like doing so. These are some of the many reasons why individuals are purchasing real estate as investment property and current low interest rates make now a perfect time to buy. The benefits of real estate investing are difficult to pass up, so go ahead and find your first real estate investment property!
About the Author
Ken Smith is a real estate agent that runs one of Chicagolands top real estate teams. He has also started <A href=”http://www.webnewsforus.com/blog/”>WebNewsForUs.com, a site that is dedicated to real estate agents learning to use their websites to grow a profitable business.
5 Tricks To Make It Big With Real Estate Investing.
June 13, 2009 by Kenny Santos
Filed under Real Estate Investing
Real estate investing is one of the most attractive ways of making good money (that is if you do it correct). Moreover, real estate investing is also a lot of fun. A lot of people practice real estate investing as their core profession and, in fact, make a lot of money that way.
Real estate investing is really an art and, like any art, it takes time to master the art of real estate investing. The key, of course, is to buy at a lower price and sell at higher price and make a profit even after paying all the costs involved in the two (buy/sell) transactions.
Generally, people are of the opinion that real estate investing makes sense only when the rates are on the rise. However, real estate investing for profits is possible just about any time (and as I just said, real estate investing is an art). Here is a list of tricks that can make real estate investing profitable for you:
1) Look for public auctions, divorce settlements and foreclosures (bank/FHA/VA): Since quick settlement is the preference here (and not price), you might get a property at a price that is much lower than the prevailing market rate. You can then make arrangements to sell it at the market rate over a short period of time. However, make sure that the property is worth the price you are paying.
2) Looking for old listings: The old listings that are still unsold may provide you with good real estate investing opportunities. Just get hold of an old newspaper and call up the sellers. They might have given up hope of selling that property at all and with a bit of negotiation you can get the property for a real low price.
3) The hidden treasure: A really old (and dirty) looking house may scare off buyers. But this might be your chance for real estate investing that can yield good profits. So, explore such properties and check if spending a bit on them can make them shine. You can get these at very low prices and make a big profit in a short time.
4) Team up with attorneys: There are a number of attorneys who handle property sales on behalf of sellers or in special circumstances (like the death of the property owner). They might sometimes be looking to dispose off the property rather quickly and hence at a low price. Be the first one to grab such real estate investing opportunities and enjoy the profits.
5) Keep tab on the newspaper announcements: Property sell offs due to deaths, divorce settlements, immediate cash requirements and other reason are frequently announced in local papers. Keep track of such real estate investing avenues.
About the Author
For more information and tips about Real estate investing please visit our web site: www.3arealestate.com
5 Tricks To Make It Big With Real Estate Investing.
May 22, 2009 by Kenny Santos
Filed under Real Estate Investing
Real estate investing is one of the most attractive ways of making good money (that is if you do it correct). Moreover, real estate investing is also a lot of fun. A lot of people practice real estate investing as their core profession and, in fact, make a lot of money that way.
Real estate investing is really an art and, like any art, it takes time to master the art of real estate investing. The key, of course, is to buy at a lower price and sell at higher price and make a profit even after paying all the costs involved in the two (buy/sell) transactions.
Generally, people are of the opinion that real estate investing makes sense only when the rates are on the rise. However, real estate investing for profits is possible just about any time (and as I just said, real estate investing is an art). Here is a list of tricks that can make real estate investing profitable for you:
1) Look for public auctions, divorce settlements and foreclosures (bank/FHA/VA): Since quick settlement is the preference here (and not price), you might get a property at a price that is much lower than the prevailing market rate. You can then make arrangements to sell it at the market rate over a short period of time. However, make sure that the property is worth the price you are paying.
2) Looking for old listings: The old listings that are still unsold may provide you with good real estate investing opportunities. Just get hold of an old newspaper and call up the sellers. They might have given up hope of selling that property at all and with a bit of negotiation you can get the property for a real low price.
3) The hidden treasure: A really old (and dirty) looking house may scare off buyers. But this might be your chance for real estate investing that can yield good profits. So, explore such properties and check if spending a bit on them can make them shine. You can get these at very low prices and make a big profit in a short time.
4) Team up with attorneys: There are a number of attorneys who handle property sales on behalf of sellers or in special circumstances (like the death of the property owner). They might sometimes be looking to dispose off the property rather quickly and hence at a low price. Be the first one to grab such real estate investing opportunities and enjoy the profits.
5) Keep tab on the newspaper announcements: Property sell offs due to deaths, divorce settlements, immediate cash requirements and other reason are frequently announced in local papers. Keep track of such real estate investing avenues.
About the Author
For more information and tips about Real estate investing please visit our web site: www.3arealestate.com
Real Estate Investing For Leverage
May 8, 2009 by Kenny Santos
Filed under Real Estate Investing
The term leverage in the world of finance is defined as borrowing money to purchase a company and relying on it to produce enough capital to cover the interest payable on the loan. This is the type of leverage that investment in real estate properties provides.
You do not have to be rich to invest. The goal, of course, is to make money for the long term. The principle is rather simple: spend a little to make a lot. Take the $10,000 you have accumulated in equity, use it as a down payment on an investment property that has a positive cash flow, use the cash flow to pay the mortgage and your investment will appreciate into ten times the original amount over time.
It is interesting to note that after you have invested in a property; your net worth has increased substantially from your initial investment. Let?s take that $10,000 and buy a piece of property with a fair market value of $100,000. The $10,000 is 10% of the value and makes a nice down payment. The mortgage is now $90,000 and you have equity of $10,000. Your net worth has increased by $90,000.
Let?s say the property produces a cash flow of $900 per month. The monthly note on a 30-year loan at 7% is only $598. Your positive cash flow is $302. If you paid all the cash flow into the monthly payment, and if you bought the property in 2006, you would have the property paid off in 2019 ? 13 years ? and the interest you save would be over $121,000.
There are two directions you could go. One is to buy and hold. This means that you buy this property and you hold on to it with everything you have. It absolutely should increase in fair market value. You should see increases in cash flow. You could add these increases to your note and then you could be realizing in a short period of time a nice, regular income from this piece of property. That retirement nest egg would be actively working for you over numerous years until retirement and through retirement.
If you think you do not have the time between now and when you want to retire, think again. The other direction may be for you. You could build some equity in the property we talked about above. Then you could trade up using the equity you built in making double payments and investment tax incentives.
You should always trade up in value or equal in value in order to benefit from the tax savings. When you take this route, you will actually be raising your net worth by much more than equity because you will be steadily increasing your net worth by more than just the cash flow from your investment.
If you were to take the fast-track accumulated equity you have built by paying double or triple the principle each month and trade up to a property worth $200,000 rather than $100,000, you could double your cash flow and pay off the mortgage in 16 years. That would give you a hefty cash flow at retirement with a very small initial investment.
About the Author:
Investment Property Specialist - Alex Anderson Connects Real Estate Investors With High-Quality Investment Properties. Get A Free Copy Of, “The Investor’s Rental Guide” at: www.GreatInvestmentProperty.com

