Investors-Its Time!! Where else can you get cash on cash returns in the double digits? Its here in real estate. According to NAR (National Assoc of Realtors) and last weeks Gazette, investors are accounting for 40% of the purchases. Why? Because they are seeing 7-15% returns on investments. Rent rates have jumped 10% and home prices have dropped 20%. Blend that with low interest rates and you have the perfect storm.
 

Here’s how its working. I personally just bought a 2600sqft. home 5beds, 3ba, 2car gar for $150,000. I put 20% down to a loan of $120,000. PITI payments on a 30yr amortization @ 5 ½% = $820.00 per month. I also spent $4500 for repairs. My investment is $34,500. It rents for $1300 per month which means $480.00 per month positive cash flow. After 1 year made $5760.00 which equals a 16.7% return on my investment. Pretty good!! 

To learn how you can do it, call us @ 719-593-2963

Thanks,

Brian

 

 

                I just read an article in Money Magazine by the Wall Street Journal. The writer James B. Stewart is a winner of a Pulitzer Prize and just wrote a new book called “Tangled Webs”.  His article is what I want to talk about today.

 

                In Mr. Stewart’s article he feels home ownership may not always be a sound financial decision. He does say that home ownership perhaps provides stability in our country because countries that are less stable have less home ownership. I do agree over the last couple of years its hard to say its good to own a home. But as this weekends Gazette pointed out for Colorado Springs, homes had appreciated on average 20% over the last 10 years. Its been slow but it’s a gain. If your home was $100,000 in 2000 its work at least $125,000 compounded. If you had 100K of stock then, I think it would be worth less than 100K now. Second he fails to point out that buyers over bought in the boom years. He does point out, accurately, that folks need to buy within their means. And this is the crux of everything Buy within your means. Buy Resale. Buy Foreclosures. People have to live somewhere so why not own it.

 

                Owning a home gives you a forced savings account. Mr. Stewart does acknowledge this. Owning allows for tax benefits. Owning and staying builds equity. We use to stay in our homes 7.3 years. Over the last 10 years it has dropped to 4 years. Stay longer and enjoy the benefits.

 

                To learn more call me at 888-593-2963

 

Thanks,

Brian