This will be the first in an ongoing series that I and others will be writing on the how and why of getting at least 20% returns.

For some of you this sounds like a pipe dream and yet for others, you stick you nose up at only 20%. But, if you are a serious investor, this a worthy goal for you to shoot for.

With some vehicles this is a bit easier than with others. Without going off on too many tangents, 20% is what Warren Buffet shoots for so, why not you?

If you can hit the magical 20% number you have a pretty good chance of retiring with a nice nest egg. For those of you that are a bit skeptical about hitting this number on a regular basis there are numerous ways to do so.

You can do it through and with or without leverage of various types. You can trade on margin, using options, or just plain borrow money, or last but not least, figure out how to purchase your investments on a wholesale basis. Then, you don’t even need to use leverage at all.

I am not going to attempt to go over every way to do this in the first installment but I do want to show you at least one way to do this in each one.

The first way that I will show you virtually anyone can do with a little bit of education and know how. The fact that it is so easy is perhaps that is why it is overlooked so often. That plus the fact that it is in no way shape or form sexy and does not make great copy. Well it does, but only for those of us that interested in results that end up in our wallet.

What I like about this is that you can do this tax free in your IRA or just pay taxes on it and do it however you want. The IRA is preferred way to do this though. I will touch upon this and get into more details later on.

The first way I will explain how to do this is with Real Estate.

Ok, quite yawning and don’t tell me that the Real Estate Market is tanking.

This is in fact one of the best times to do this. Have figured out that the best time to get into something is when everyone else is getting out?

This image to the left is from an actual deal that I was involved with late last year. Look at the numbers, they don’t lie. The truth of the matter is that instead of renting this out, you could easily sell it right away and gain at least 20% in less than 60 days. Yes, you can sell deals like this even in the current Real Estate Market.

What if you managed to pull of doing this 5 times in a year?

This would put your annualized return in the 100% plus range. The truth of the matter is that there are deals out there this and better every single day.

These deals, once you know what you are doing are not rocket science. You can automate most of the process and as I said, you can easily do them in a self-directed Roth IRA. You can even borrow up to 70% of the money you need to make a purchase like this in your Roth!

One of the things that I love about deals like this is that in this particular deal, you would only need less than $20,000 in your Roth to do this. If you wan’t to find out whom I recommend to get these loans, just post a comment here and I will send you the info. Should have a link up for them in a few days or so.

Even if you only did two or three of these a year, can you imagine how much money you would have in your IRA?

Plus, if you have had it open for over 5 years and your are over 55, you can immediately take the money out and spend it tax free from deals like this. And if you are not 55, there are ways you can lend it out and even take part of the money out when you need it and still come out way ahead.

Is that fantastic or what?

With the housing market tanking in many areas, there are deals to be had everywhere. Granted, there are some better places than others, but they are pretty much everywhere.

Plus, if you purchase turnkey deals like this one like we do, all of the work is taking care of and the downside is very, very low. You can also go out and find deals like this yourself at wholesale prices right now. This will only add several points to already great returns.

Don’t like little residential deals like this? Well there are commercials deals in the hundreds or thousands or millions of dollars that look almost this good too.

So, if you don’t have Real Estate as part of your 20% return plan, than you should seriously consider it.

I will be posting a whole section on how to purchase Real Estate in your own Roth IRA. If you are not currently doing this, you owe yourself a favor and should look into it.

Have your heard of Real Estate Options? If not, you are in for a treat as well. This is a way that you can get returns in the 100’s of percent. I will go over exactly how you can get into this very lucrative market that you won’t probably hear about in the mainstream media outlets.

In the meantime, look at adding Real Estate to your portfolio.

This entry was posted on Tuesday, January 22nd, 2008 at 2:29 pm and is filed under 20 Percent Plus Returns, Economics, Investing, Opinion, Options, Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.