PUTTING IT ALL TOGETHER
Now lets put it all together by using our example of a 10k investment and see how much our total profit is. First off we use the banks money to buy the $100k house (leverage). Secondly we then rent it out earning $83.00 per month in positive cash flow. Thirdly at the end of the year our bank loan of $100k is now worth $98,222.00, which means we made another $1778.00 and finally at the end of the first year our property appreciated by 5% or in our case $5000.00. Let’s add it all up. ($83 x 12) $1000 + $1778 + $5000= $7778.00. The bottom line is that your $10,000.00 investment has earned you a total of $7778.00 in one year! That equals a 77.78% return on your investment (ROI). If you were to put that $10,000.00 in a GIC paying 5% you would have made only $500.00 in the first year.
Now lets put it all together by using our example of a 10k investment and see how much our total profit is. First off we use the banks money to buy the $100k house (leverage). Secondly we then rent it out earning $83.00 per month in positive cash flow. Thirdly at the end of the year our bank loan of $100k is now worth $98,222.00, which means we made another $1778.00 and finally at the end of the first year our property appreciated by 5% or in our case $5000.00. Let’s add it all up. ($83 x 12) $1000 + $1778 + $5000= $7778.00. The bottom line is that your $10,000.00 investment has earned you a total of $7778.00 in one year! That equals a 77.78% return on your investment (ROI). If you were to put that $10,000.00 in a GIC paying 5% you would have made only $500.00 in the first year.
That's why you should invest in Real Estate...
...so you can spend time on what really matters in life!
...so you can spend time on what really matters in life!
Live Everyday To Its Fullest!!
"Invest In Real Estate Now For The Benefit Of Future Generations"
