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Accelerate Your Financial Independence

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How to combine short-term and long term real estate investing.
Methods to accelerate and optimize your investments.

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Accelerate Your Financial Independence

  1. 1. Accelerate Your Financial Independence Dani Beit-Or June 2011
  2. 2. Part A <ul><li>Back To Basic </li></ul>
  3. 3. Benefits Of Real Estate <ul><li>Mortgage Miracle </li></ul><ul><li>Leverage </li></ul><ul><li>Tax Benefits </li></ul><ul><li>Deductions </li></ul><ul><li>Side Business </li></ul><ul><li>Occupation Fuel </li></ul><ul><li>Solve Many Financial Challenges </li></ul>
  4. 4. Part B <ul><li>Accelerating </li></ul>
  5. 5. Scenario #1
  6. 6. The Property House #1 <ul><li>Single Family in Metro Phoenix </li></ul><ul><li>Purchase Price: $75,000 (Total costs) </li></ul><ul><li>3 Bedrooms, 2 Bathrooms, 1500 Sq. Ft., 2 Car Garage, Built in 2003, Good School District </li></ul>
  7. 7. Financial Assumptions <ul><li>Purchase price: $75,000 </li></ul><ul><li>Loan 80%: $60,000 </li></ul><ul><li>Down-payment (20%): $15,000 </li></ul><ul><li>Interest rate: 5% </li></ul><ul><li>Annual rent income: $11,000 </li></ul><ul><li>Expenses:Annual mortgage payment: $3,000 </li></ul><ul><li>Annual expenses: $2,800 </li></ul><ul><li>Net cash flow: $5,200 | $430 Month </li></ul>
  8. 8. Option 1 <ul><li>Get $430 cash flow per month or $5,200 per year </li></ul><ul><li>Payoff mortgage in 30 years or sell property at some point </li></ul>
  9. 9. Option 2 <ul><li>Take $0 in cash-flow </li></ul><ul><li>Apply mortgage acceleration technique </li></ul><ul><li>Pay house in 12 years </li></ul>
  10. 10. House #2 <ul><li>Same financial details </li></ul><ul><li>Bought 1 year after house 1 </li></ul><ul><li>Gets paid off after 11 years with the help of house 1 </li></ul>
  11. 11. Scenario #2
  12. 12. Financial Assumptions <ul><li>House # 3 </li></ul><ul><li>Purchase price: $80,000 </li></ul><ul><li>Rehab costs: 15,000 </li></ul><ul><li>Holding costs: $5,000 </li></ul><ul><li>Total: $100,000 </li></ul><ul><li>Selling price: $125,000 </li></ul><ul><li>Selling expenses: $12,500 </li></ul><ul><li>Net price: $115,000 </li></ul><ul><li>Net profit: $12,500 </li></ul><ul><li>Duration 5 months </li></ul><ul><li>ROI: 12.5% | 25% annually </li></ul>
  13. 13. Investor Versions <ul><li>Real Estate Investor 1.0 </li></ul><ul><li>Real Estate Investor 2.0 </li></ul><ul><li>Real Estate Investor 2.5 </li></ul><ul><li>Real Estate Investor 3.0 </li></ul>
  14. 15. Short-term Engine No land-lording In and out in a short period of time Greater unknown factor Long-term Engine The Power of leverage Slow and requires stamina Your Real Estate Engines
  15. 16. Real Estate Investor 3.0 <ul><li>Acquisition: </li></ul><ul><ul><li>Auction </li></ul></ul><ul><ul><li>Owner </li></ul></ul><ul><ul><li>MLS </li></ul></ul><ul><ul><li>REO </li></ul></ul><ul><li>Exit: </li></ul><ul><ul><li>Flip </li></ul></ul><ul><ul><li>Lease-to-own </li></ul></ul><ul><ul><li>Owner financing </li></ul></ul><ul><ul><li>Rent </li></ul></ul>
  16. 17. Contact Info Dani Beit-Or @simplydoit [email_address] simplydoit.net
  17. 18. Questions

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