And Make a Fortune From This Market Downturn
I’m about to show you in 3 steps how you can build a $2.4 million dollar real estate portfolio that provides roughly $2,400 a month cash flow and $600,000 of instant equity!
Mike and I started buying properties in early 2003 and we built a residential real estate portfolio of approximately 120+ homes ($36,000,000). I tell you this wasn’t easy, we hustled our butts off and many times worked 7 days a week. When the prices started to rise monthly in Phoenix we decided to sell the entire portfolio. In a very short time we and our friends and family made millions and millions of dollars. Now lets fast forward to present day, we started buying again in early 2008 and so far own 50 cash flow properties for our own personal portfolio. We believe that again the market will turn, maybe not like 2005 but it will turn for sure and we and our clients will make a fortune all over again.
Now let’s talk about you and how you can set yourself up to make a windfall from this market downturn using our program.
**Let’s make couple assumptions for example purposes: Each home purchased averages $200,000 in appraised value and your purchase price would be $150,000 (75% Loan to Value) plus the $7,500 down. Each property will cash flows about $200 a month**
Now I will show you how to amass a $2.4 million dollar portfolio that has $600,000 of guaranteed equity and $2,400 a month cash flow.
Get started with the Fortress Investor Program and buy at least 3 properties. This will cost you roughly $22,500. Now using the assumptions above you now own $600,000 of real estate that has $150,000 of guaranteed instant equity and $600 a month cash flow.
Quick Math: 3 x $200,000 = $600,000 x 75% = $450,000.
$600,000 – $450,000 = $150,000 equity
Now under Fannie and Freddie’s current guidelines and investor can only have 4 properties on their personal credit. So essentially 1 primary resident and 3 investment properties. With this new rule you have to be creative to build a large portfolio.
Share your experience with friends, family, relatives and co-workers. You become the point man working with Fortress on the acquiring the properties and management company regarding the property management. The goal would be to have 3 individuals that would buy 3 properties just like you have done. I will show you how you will benefit in step 3, let’s do some quick math.
Quick Math: 3 individuals x 3 properties = 9 properties. 9 x $200,000 = $1,800,000
$1,800,000 x 75% = $1,350,000. $1,800,000 – $1,350,000 = $450,000 equity
Here is how how you build a million dollare property portfolio. It gets a little complicated, so stick with me.
You will then purchase an Option on the properties for 75% of the value, splitting 50% of the profits with the Optionee. In our example the option contracts would be for $150,000 each. Within the terms of the option contract you will lease the property from them for the monthly fee equating to the real mortgage payment amount. This will allow you or the management company to collect the rents and manage the property. You will pay the monthly mortgage payments as it’s agreed in the option/lease agreement and then you are able to keep the cash flow. Now how much will this option cost? Well it’s all negotiable but we have paid as little as $4,000 upward to $20,000 depending on the situation. I would start out offering $7,500 so the friend/investor will have no money at risk. This will cost some cash but no where near the amount it would cost using traditional methods of buying investment property.
Now let’s see what the end result is:
You own/control $2.4 million dollars of real estate that has $600,000 of guaranteed equity (plus future profits from apperception). $150,000 of that is 100% yours and $450,000 you split with your investor/friend. In our assumption each property has $200 cash flow, so you would be collecting approximately $2,400 a month, $28,800 a year.
You can also build a property portfolio and keep the money in the family by leveraging yours and your spouse’s credit, check out the example below:
This is really possible, we have done it and are doing it today. If you have questions and are serious about diving into this model than give us a call at 888-643-0194 or visit Fortress Investments
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