If you haven’t noticed it on the Jason Hartman website yet, our favorite saying goes like this: “Don’t wait to buy real estate. Buy real estate…then wait.” We can hear the groans out there already. No one likes the idea of twiddling their thumbs forever when it comes time to begin wealth-building. Sorry if you’re impatient – but that’s the way it goes. We’re talking real life here. Not the hyperactive, get-rich-quick pitches on late night television that promise thousands of dollars a day will soon be flowing into your account.
The neat little part about buying and holding real estate is, if you follow our mortgaging strategy on buying residential properties to rent out, your wait really won’t be that long at all. Say you tapped your home equity to put down $200,000, the bank loaned you the rest, and you bought one million dollars worth of rental property. Using historical numbers, the property value will have doubled after 12 years. You’re sitting on two million dollars worth of properties and have used the rent money over the years to pay down the mortgage.
Refinance your properties based on the new worth at an 80% loan-to-value rate and the bank hands over $700,000 cash, which you could then live on at the rate of almost $60,000 per year for the next 12 years until it’s time to refinance again.
Is 12 years too long to wait for a $60,000 hands-off income stream?
We don’t think so. In fact, it sounds like pretty smart wealth-building.
The Creating Wealth Team
Flickr / alancleaver_2000
