The stock market is very unstable right now, going up and down, while interest rates are so low that you want to be a borrower and not a lender. Would you like some tips on how you can make the most of low interest rates and be sure your principal won’t disappear while you’re trying to make some money? Of course, there is always the danger of borrowing the money and then spending it simply because it is there.
So, would you also like to know the best way to borrow money at today’s low rates without spending it? Buy real estate. Not just any real estate, but real estate that will hold its value, even if single-family homes collapse. These are apartment buildings. With apartment rents continuing to rise, the value of apartment buildings has the best chance to appreciate while everything else goes down.
Low interest rates mean you can be cash-flow positive at real estate purchase prices you would have lost your shirt for, even two years ago. Rates are currently 4.5% to 6.5% interest when we used to pay 9% for apartment loans just a few years ago. Apartments have become a better investment for two main reasons. First, maintenance costs (interest costs) have decreased. Second, revenue has increased substantially. Can things be better than this? YES CAN.
I have developed two programs. One is to take people with small net worth and build an estate or self-directed IRA (tax-free retirement plan) that is worth up to $800,000 in 15 years and generates an income of $60,000 per year and both continue going up after that.
For those who can come up with $100,000 to get started, I have developed a second program where the numbers come up to a net worth of $1,300,000, netting $100,000 per year and in just 10 years. Incredible? And, in addition, with low risk! This works out to be a 25% annual return without a stock market roller coaster. I figured out how to do it and it really works. I have done it before and I know many retirees who have done it in the past.
The current problem with most baby boomers over the age of 50 is that they never started building a retirement fund. So now, instead of having the normal 30 years to build a retirement fund, they need to be there in 10 to 15 years. It could take a year of financial hell to get some cash. (That means no money for anything except hoarding cash) But after that, it can be a sweet and painless ride to wealth. The best part is that the chance of failure is less than 10%, if you follow my steps
First: Money is not touched for 10 years. That’s why a trust fund, IRA, or self-directed retirement plan is a great place to put this.
Second: I have taken my 30 years of real estate experience to develop exactly which properties will yield the most appreciation and cash flow and will also be the best risks. Interestingly, almost everyone I talk to chooses the wrong places to shop until they hear the full list of criteria.
Now that I’ve told you the lazy man’s path to wealth, let me tell you the downside. You have to have the right time in buying it. In December 2001, everything was ready to carry out these two programs in Los Angeles County. Unfortunately, in July 2002, the numbers were no longer working. They still worked in Florida, for example, but not in Los Angeles. What happens is that prices go up after rates go down. The seller sees how good a deal the buyer can get and raises the asking price. So! Your time to start these programs is very important. However, don’t be discouraged. If the numbers don’t work today, it will work tomorrow. The system is solid, and since we’re talking about long-term wealth accumulation, a little patience can go a long way.