1. Invest $25,000 For $1 Million Dollars In 10 Short Years - Here's
How
Going from a seed capital account of $25,000 and turning it into One Million Dollars in 10 short years
is simple, lets look at how this could be done.
In this investor run sheet, we will assume you are looking for 30% returns. All investors know that a
30% return is a reasonable expectation and is within the ball park of possible. We will be using capital
gains in real estate to make 14 transactions over 10 years. That is just over one a year.
If you will take a calculator and punch in the number 25000 and multiply it by 1.3 which is the same
as 30% and do it 14 times, you will see how the money compounds into $1 million dollars over those
14 transactions.
Your first transaction should be land because your seed capital is quite small at this stage. Raw land
is cheaper because obviously, there is no house on it. The first purchase, you will do a professional
investors stock in trade. The humble land subdivision. The idea is simple. Find large blocks, (corner
blocks are particularly suited for this purpose) and do your research to make sure the block is large
enough to make 2 new blocks. Sell the blocks off individually for a 30% or more return.
Repeat this process for the following transaction but at higher and higher price levels in better and
better parts of town. Once you reach $100,000 you have enough to start re-habbing homes. This is
about transaction 6 Buy and sell larger and better homes, making sure to utilize as much of the seed
capital as you can but making sure you are getting equal or better value for each transaction.
Your last few transactions will be easy. Having all that seed capital, you will not even need the banks
money, but the final piece to the puzzle, is leverage. When you borrow money, you utilize leverage.
Your $25000 initial seed capital account is big enough to borrow nearly $90,000, so in this sense, the
above returns are magnified dramatically. Anyone could do this within 4 to 6 years.
burbank CA real estate