Our apologies if you were raised to believe that great wealth could be built over decades of a slow, steady invest in Wall Street stocks, bonds, and mutual funds. From experience, and we’ve had a lot of it, the facts simply don’t bear out this assertion any more. This is not to say no one ever makes money through stock investments, only that, thanks to big-time operators and wild speculation driven by global events, this surely isn’t your grandfather’s stock market anymore.
Things have changed.
The problem is that too many people have no idea where to invest, if not in stocks. Over the next few paragraphs, we’ll introduce a little strategy called income property investing, a strategy historically proven to return the largest assets of any class. The basic idea is as old as the hills: buy a house and rent it out. It’s so simple it’s boring, which is exactly the point. Wealth generation should be boring! Look elsewhere for excitement in your life.
Here’s a recent example of the kind of cash flow you can expect with a property recently listed with our affiliate, Platinum Properties Investor Network. It’s located in Indianapolis and goes for $87,000. The cash you’ll have to come up with to buy it equals $23,925 (down payment, loan origination fees, closing costs). Considering the strong rental market in that part of the country, you can expect to earn $1,050 monthly from tenants, which equals $12,600 annually, minus $1,008 for minimal vacancy. Your operating income on this house is $11,592.
Here’s where it starts to get really interesting. Subtract overhead expenses like taxes, mortgage payment, management fee, maintenance, etc., and you’re left with a positive cash flow of $229 each month. Granted, that amount is not likely to set your financial world on fire but it’s the way of thinking that’s important here. By the time you have four similar houses in your real estate portfolio you’re raking in over a thousand bucks each month, and this is completely passive income.
The Big Idea here is that you buy an asset with money mostly borrowed from the bank, then pay off the mortgage by renting the asset out. By the time the house is debt free, you have secured an income-generating investment at an AMAZING discount. Here are more properties if you're interested.
The Jake Swank Team