Monday, September 10, 2012

Investing in Real Estate Could Be
(even in these market conditions)
a GREAT wealth building tool.
Here are some strategies that are shared in the book "HOLD" written by Gary Keller

The Power of Leverage

Leverage is using other people's money (banks, mortgage companies, and owner financiers) to make money. Leverage multiplies your profit.

The Power of Leverage in real estate investments: Equity Build up

  1. At the time a property is purchased you are at Market Value - little equity, little investment (20% down) and a lot of debt.
  2. After some time, your Equity begins to grow. Your investment is still the same at time of purchase, and your debt is going down.
  3. The equity begins to build while the debt is going down
  4. eventually, when you have paid off the mortgage, your market value has gone up, your debt is gone, and all you have left is equity in a property that is worth more than it was when you bought it, and your investment never changed.

Contact The Korn Team if you would like to see the graphic of what this looks like. Remember, it is about doing it RIGHT!

  • Buy it RIGHT!
  • Pay it down
  • Pay it off