The document provides information to convince readers to invest in real estate as a way to secure their financial future with less risk compared to stocks. It discusses how real estate can provide steady appreciation, tax benefits from deductions and capital gains treatment, and leverage through financing to amplify returns. The document outlines strategies like refinancing equity for additional purchases and 1031 exchanges to grow a rental property portfolio over time with modest initial investment.

1. Secure Your Financial Future With Less Risk

3. Disclaimer

15. Part III: Stocks vs Real Estate Stocks/Bonds Real Estate Investor buys $50K stock porfolio Investor puts 20% down on a $240,000 rental Initial Investment $50,000 Initial Investment (incl. close, reserve) $50,000 Initial Value $50,000 Initial Value $240,000 Annual Appreciation 10% Annual Appreciation 10% 1st Year New Value $55,000 1st Year New Value $264,000 Gain $5,000 Gain $24,000 % Return after 1 year 10% % Return after 1 year 48% Values after 5 years Investment $50,000 Investment $50,000 Initial Value $50,000 Initial Value $240,000 Appreciation Rate 10% Appreciation Rate 10% New Value $80,526 New Value $386,522 Gain $30,526 Gain $146,522 Percent Return 61% Percent Return 293% Appreciation Rate Required to Double the Money Invested Stocks/Bonds Real Estate 100% 20% Avg Annual Return 12% Avg Annual Return 59%

18. Part V: Building Your Portfolio 33 months pass … (At 10% annual appreciation) 1st House -- Purchase $250,000 Price $200,000 Loan $58,000 Down Payment + Reserves + Closing Costs $0 Equity applied $0 Equity released 33 months pass… (At 10% annual appreciation) 1st House Refinanced $328,750 New Appraised Value $263,000 Loan $0 Out of Pocket Invested $5,000 Closing costs of Refinance $0 Equity applied $58,000 Equity released Original House Sold $404,250 Sale Price $379,995 Proceeds of Sale $263,000 Loan Payoff $995 1031 Exchange Fee $116,000 Equity Released New 1st House $250,000 Price $200,000 Loan $0 Out of Pocket Invested $8,000 Closing costs plus Reserves $58,000 Equity applied $0 Equity released New 3rd House $250,000 Price $200,000 Loan $0 Out of Pocket Invested $8,000 Closing costs plus Reserves $58,000 Equity applied $0 Equity released 2nd House – Purchase $250,000 Price $200,000 Loan $0 Out of Pocket Invested $8,000 Closing costs plus Reserves $58,000 Equity applied $0 Equity released 25 months pass… (At 10% annual appreciation) 2nd House Refinanced $328,750 New Appraised Value $263,000 Loan $0 Out of Pocket Invested $5,000 Closing costs of Refinance $0 Equity applied $58,000 Equity released 4th House – Purchase at 5.5 years $250,000 Price $200,000 Loan $0 Out of Pocket Invested $8,000 Closing costs plus Reserves $58,000 Equity applied $0 Equity released Portfolio Stats: Total Time Elapsed 10 Years Out-of-Pocket Invested $58,000 1st House is gone (sold) NEW 1 st House Value $418,211 2 nd House Value $514,634 3 rd House Value $418,211 4 th House Value $391,347 Total Value of Properties $1,742,403 Loan Balance $863,000 Total Equity $879,403 Annual Rate of Return 31.24%

23. Part VI: Where Should You Invest? http://www.ofheo.gov/media/pdf/1q07hpi.pdf

25. http://www.ofheo.gov/media/pdf/1q07hpi.pdf Acceleration when most other areas are slowing!

28. Sample Cash Flow:

29. Questions? Ryan Simms (253) 970-6193 [email_address]