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Financial Leverage
Using real estate to demonstrate the way to financial success
and wealth using financial leverage.
It boils down to three very simple rules.
Find out where people are going.....people make price.
Get there first and buy up parcels of land.
Location--Location --Location
Services, transportation--not in a swamp or environmental hazard
area will provide the safest investment.
How do the RICH GUYS do it?
FINANCIAL LEVERAGE.....The Key to Financial Freedom
To put it simple: Take the smallest amount of money to control the
largest value in a real estate investment.
Take a duplex valued at $100,000. {This low figure is for demostration
purposes, of course property values tend higher.} if it is purchased with 10% down, financial leverage is used to control not the $10,000, but 10 times
as much, the whole $100,000.
****You don't have to be a tax attorney or an accountant to realize
the government is subsidizing your ownership by allowing certain
business expenses such as taxes, insurance, mortgage interest
deductions and depreciation during property ownership.****
{Warning to understand the full government benefits offered a
good tax attorney or accountant is NECESSARY. Better be safe
and well informed now, than sorry later.}
Rental Income could well pay for the property, possibly furnish
some cash flow at the same time. SO WHAT! Having renters buy
a property is just the smallest benefit. Building up equity is not
the end of the story.
INFLATION, APPRECIATION in property value provides the
real wealth. Owning the property for only 10 years at the average
inflation rate of 5% per year is not unrealistic. Purchasing in a
good growth location will produce much more and at the end
of a 10 year period check how much is the property worth?
Financial Leverage, the secret to wealth, using borrowed
money to control the resource, in this case real estate, while
the value soars.
At 5% appreciation at the end of ten years your $10,000 original
investment has grown five times. The investment is now worth
$150,000 plus from the value of $100,000 controlled at the time
of purchase.
The big secret to financial leverage is the small original investment used to control the largest amount of value. Other benefits accrue at the same time such as cash flow and equity build up, just more frosting on the cake..
No puzzle, no mystery...just using money plus time...and the correct pick of investments of course. Multiply your results by learning the lessons of leverage and apply to your activities and tasks. Enlist others to assist in multiplying your efforts.
Personal Endorsement....you need for the extra boost for your Internet Business, ADLANDPRO for the most comprehensive group of resources available at any single source. Correspond with thousands of other homebased workers, advertise and promote and LEARN from the best. Join this sharing group.....Harvey Akeson, Tucson, Arizona
Using real estate to demonstrate the way to financial success
and wealth using financial leverage.
It boils down to three very simple rules.
Find out where people are going.....people make price.
Get there first and buy up parcels of land.
Location--Location --Location
Services, transportation--not in a swamp or environmental hazard
area will provide the safest investment.
How do the RICH GUYS do it?
FINANCIAL LEVERAGE.....The Key to Financial Freedom
To put it simple: Take the smallest amount of money to control the
largest value in a real estate investment.
Take a duplex valued at $100,000. {This low figure is for demostration
purposes, of course property values tend higher.} if it is purchased with 10% down, financial leverage is used to control not the $10,000, but 10 times
as much, the whole $100,000.
****You don't have to be a tax attorney or an accountant to realize
the government is subsidizing your ownership by allowing certain
business expenses such as taxes, insurance, mortgage interest
deductions and depreciation during property ownership.****
{Warning to understand the full government benefits offered a
good tax attorney or accountant is NECESSARY. Better be safe
and well informed now, than sorry later.}
Rental Income could well pay for the property, possibly furnish
some cash flow at the same time. SO WHAT! Having renters buy
a property is just the smallest benefit. Building up equity is not
the end of the story.
INFLATION, APPRECIATION in property value provides the
real wealth. Owning the property for only 10 years at the average
inflation rate of 5% per year is not unrealistic. Purchasing in a
good growth location will produce much more and at the end
of a 10 year period check how much is the property worth?
Financial Leverage, the secret to wealth, using borrowed
money to control the resource, in this case real estate, while
the value soars.
At 5% appreciation at the end of ten years your $10,000 original
investment has grown five times. The investment is now worth
$150,000 plus from the value of $100,000 controlled at the time
of purchase.
The big secret to financial leverage is the small original investment used to control the largest amount of value. Other benefits accrue at the same time such as cash flow and equity build up, just more frosting on the cake..
No puzzle, no mystery...just using money plus time...and the correct pick of investments of course. Multiply your results by learning the lessons of leverage and apply to your activities and tasks. Enlist others to assist in multiplying your efforts.
Personal Endorsement....you need for the extra boost for your Internet Business, ADLANDPRO for the most comprehensive group of resources available at any single source. Correspond with thousands of other homebased workers, advertise and promote and LEARN from the best. Join this sharing group.....Harvey Akeson, Tucson, Arizona
A1 Profit Makers.....making home-based business successful. Sign up
for free advertising and promotional program and projects to build your
sales....and profits. Check this out...start your own Traffic Agency.
Reprint right by permission: harvey@harveyakeson.com
