This is a Real World example of how you can make a 20%+ return. This is a Duplex that needs virtually no work, that you can purchase for less than 38% of current market value and immediately wholesale to another investor and make at least $10,000 to $30,000 or sell well below retail and make $40,000 to $50,000. You can also Rent it out and I will show you how you can get a 55% return on it yearly.

You could also just hold on to it and rent it out for $1,000 to $1,400 per month. Current estimate of market value are $111,500 to $130,000.

The purchase price is only $41,900. That is not the down payment, that is the actual purchase price.

I want to take a look at a quick ROI on this play. So, we are walking into at least $70,000 worth of equity right off the bat. When was the last time you did that?

Without using leverage we pony up the whole $43,000. I am using this amount because we have some closing costs to include. If we rent it out for $1,200 per month, we end up with $14,400 gross income. Lets take out $100 per month for management fee’s unless you want to do that yourself, which you can. Then we take out another $180 per month for property taxes and about $70 for insurance. This puts at about $350 per month for expenses. So that leaves us with $850 per month net. And to play it safe, lets take out another $50 per month for maintenance and this gives us $800 per month net cash on cash or $9,600 per year on a $43,000 investment. This gives us a 22.3% return.

Now this does not include any of the right offs that we will be able to take nor that fact that we can go out and borrow$20,000 to $30,000 on this quite easily. The most we would have to pay would be about $200 per month if we borrowed $30,000 even at a very high interest rate. While that would reduce our income down to $600 per month or $7,200 per year, it also takes our cash invested down to $13,000 and increasing our actual yield up to 55.3%. Do you like this so far? The great thing about this is that you could do this in an IRA.

So, we end up having an asset that has about $100,000 of equity that is throwing off at least $600 in monthly cash dividends that we only have $13,000 invested in, plus we have huge tax benefits as well. Whoops, I forgot that we will also have deposits that will further reduce our actual cash out of pocket. Let us say we get another $1,000 in deposits. We are now down to $12,000 invested which brings our yield up to a whopping 60%.

Do you see how you can easily do 5 or 10 of these a year and retire in a very short while? What if you just picked up one of these a year for the next ten years? What could you do with an extra $6,000 per month and $1,000,000+ in assets. What if you picked up 5 of these a month for the next 6 months? All of these scenarios are quite doable.

Now do you see why over 70% of all millionaires have made it in Real Estate? We actually have 5 more deals like this that just came in as well. I will post more information on them tomorrow. If you are interested in this property, please leave a comment and we will get with you promptly.

And I can’t leave you without this tease. I hope that by looking at these numbers, you can see how we consistently get over 20% returns for ourselves and our partners on a regular basis. If I told you how much we really get you probably would not believe me, but needless to say, I hope that you can now see how you can do this yourself.

The deals are out there and what the market is doing is not relevant. People ask me what is going on with the Real Estate Market and I have to say Huh? Not that I don’t keep up but it is almost irrelevant if you are buying your property at a huge discount to current market prices. If the numbers are right, it does not matter what the market is doing really. By the way, this property is happens to be located in Cleveland, Ohio.

The very same town where Carnegie and the Rockefeller’s made their fortunes. It could be the place where you started yours as well.

If not here, you might want to look at putting Real Estate in your Portfolio.

This entry was posted on Tuesday, January 22nd, 2008 at 8:05 pm and is filed under 20 Percent Plus Returns, Hot Deals, 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.