REAL ESTATE MILLIONAIRES CLUB REPORT
The evidence is irrefutable and the jury has cast a unanimous verdict: the financial landscape of our economy has been dramatically and unequivocally altered and America is now a nation of two vastly different economies. I’m certain you have witnessed it firsthand in your home town or neighborhood: great contrasts between prosperity and wealth on the one hand, and hardship and despair on the other. One of these American economies is thriving, as are the fortunate inhabitants of this highly privileged class that are a part of it. They are the “Power Brokers” of our generation. The other economy…where the vast majority of our citizenry reside are structurally removed from the benefits of the other’s exclusive membership characterized by massive wealth and financial independence. The income disparity between these two-tiered economies is accelerating by quantum leaps as the nation’s redistribution of wealth has evolved into divergent fortunes for those on the inside experiencing “the-good-life” compared to those on the outside living paycheck-to-paycheck looking in.
Any economist or “financial advisor” worth their consulting fee will acknowledge that these trends are firmly in place and effectively perpetuating these two parallel but uniquely distinct economies -which have been building for years and seem to be impervious to a re-leveling of the playing field. This disturbing trend becomes more prevalent each passing day…altering the financial landscape and lifestyle for many who are unable to gain entry into the winners-take-all entitlements and exclusivity of the Real Estate Millionaires Club! For those up to the challenge and not fearful of the self-imposed “barriers-to entry”…consider investing in Commercial Real Estate. Allow us to share helpful tips to “crashing the party” and securing the financial security and independence you have dreamed of for you & your loved ones.
10 Reasons Why You Need To Invest In Real Estate!
AMJ Capital Partners believes that real estate is the most powerful and consistently performing investment vehicle available to investors of every financial means for the following reasons:
1. Leverage – Financial institutions are happy to lend anywhere from 75% to 90% of the purchase price of real estate to qualified individuals. This is not the case with other investment vehicles. While investment houses may allow you to borrow 30% of the value of your stock portfolio, if stock prices go down, the investment house will make a margin call ordering you to pay back a portion of the borrowed funds so as to be within the acceptable percentages again. The fact of the matter is than most people investing in stocks do not utilize margin loans and generally put up the stock’s entire purchase price in cash.
Thus, if you had $50,000 to invest in real estate, with that $50,000 investment you could control $500,000 or more in real estate assets (assuming a 90% value to loan ratio). This same amount utilized to purchase stock would only purchase $50,000 worth of stock.
2. Superior Rate of Return – Ignoring other positive attributes of real estate including tax benefits and monthly rental income; real estate provides superior rates of return to stocks and other assets given the underlying power of leverage. Given our example above, if your $500,000 in real estate assets were to appreciate 10% in the first year of ownership, you would have a gain of $50,000 or a 100% first year’s return on our original $50,000 investment ($50,000/$50,000). If the $50,000 stock portfolio was also to appreciate 10% you would have a $5,000 gain yet your first year’s return would have only been 10% ($5,000/$50,000). If you are to achieve a significant net worth over a relatively short time period you have to achieve the higher cash-on-cash returns that only real estate can provide.
3. Income – Real estate produces rental income to offset the costs of ownership, maintenance and financing costs. Obviously, it is the goal of all investors to have a positive cash flow for all properties. While other investment vehicles such as stocks and bonds do offer dividends and principal and interest payments respectively, they do not provide the additional benefits of real estate investing.
4. Amortization – On a monthly basis as tenants make their rental payments and you utilize their rental payments to pay down the mortgage on the property thus increasing your equity in the property and your net worth.
5. Appreciation – Since records have been kept in relation to the issue, real estate has increased in value at an average rate of approximately 6% per year or approximately twice the rate of inflation. This fact combined with use of leverage, tax benefits, and income. Once you purchase $50,000 worth of stock the market value of the stock is worth $50,000. The value of the stock will then begin to move up and down with the market. When you purchase real estate however, you may be able to purchase a commercial property valued at $2,000,000 for $1,500,000 because the property owner is going through a tough time, cannot refinance the property and needs cash for some other purpose. You become the benefactor of the property owners’ financial distress and you have the ability to purchase real estate and create instant equity in the property.
7. Increase the Value of Your Real Estate Assets – If you purchase $50,000 in stock there is nothing you can do to increase the value of the stock. You are at the mercy of the company’s board of directors, management and the consumers who purchase the product of the company. The value of stock can evaporate overnight as former Enron stockholders can attest to. This is not the case with real estate. You can take action to increase the value of the property.
Commercial property values can be enhanced by merely increasing the rents and the occupancy levels. A $10.00 per month increase in rent converts to a $1200.00 per door increase in equity. Exponentially, the equity increases very dramatically: for example, a 5-unit building would generate $6,000 equity increase; A 50-unit building would generate a $60,000 equity increase; 100-unit building would generate a $120,000 equity increase.
If you raise the occupancy level by 2%…you double the results!
***This is how massive Wealth can be created by investing in Commercial Real Estate
8. Tax Advantages – Real estate offers many tax advantages to investors. One of the strongest benefits is the ability to depreciate the value of the property (excluding land value) over time. Depreciation does not the cost you any money and yet it can provide a tax loss to offset your earned income. Please consult with your tax advisor on this issue as tax advantages vary from individual to individual and every investor’s tax scenario is unique.
9. Obtain Cash Without Selling and/or Paying Taxes – As real estate appreciates in value one may refinance the property and pull out cash without paying any taxes. For:
The key factor to consider is that refinancing your property is not a taxable event. Excluding margin loans, the only way to receive money from stocks is to sell the stock which triggers a taxable event for the taxpayer
10. Real Estate is the Simplest and Easiest Way to Create a Huge Net Worth with Very Little Cash.
Commercial Real Estate is the #1 asset class that can repeatedly transform ordinary people with little cash or credit into Real Estate Millionaires by implementing proven investment techniques and strategies that provide Big Profits and a Lifetime Recurring Passive Income Stream.
Commercial real estate investing…particularly in Apartment Buildings…is an ideal vehicle for building assets, increasing your income and providing you with a path for retirement on your own terms by capitalizing on amazing cash flowing investment opportunities.
By providing a proven blueprint for successful investing in commercial real estate, our goal is to help you maximize profits and increase value from your investment in low risk, income-producing commercial properties. Investing in multifamily apartment buildings is one of the most profitable strategies for creating a reliable stream of income, building equity and long-term wealth. Our professional team of apartment acquisition specialists take pride in our “entrepreneurial” spirit…and believe that with the proper guidance, a well-defined plan, and a little capital, anyone can profit by buying and selling rental properties. Join us as an active investor and begin to secure your financial freedom and start making a consistent, steady and substantial monthly cash flow investing in commercial real estate. Take Action Now…Your Seat Inside the Winner’s Circle is Waiting!