How To Buy One House A Year For Wealth

What does your future hold for you? Will you be able to retire without loosing the lifestyle you have become accustom to? Are you looking to have enough passive income that you can quit your job and travel? Perhaps you would like to be able to help other people that are less fortunate than yourself? These are all great reasons to build wealth, but to build wealth requires a plan. Without a plan the only way you will build wealth is by getting Lucky.

The old adage get a good education, work hard and you will be rewarded may allow you to get buy today but what about the future? Support your union and your union will support you. Find a good company and keep your nose to the grind stone and you will be taken care of. How did that attitude work out for the steel workers of America or the Enron employees? The only great retirement plan that is available today is the ones created by our government Representatives for themselves. They do not rely on savings, IRA, company retirement plan or Social Security.

If you plan to live 20 years after retirement you will need over one million dollars in the bank to live comfortable. How much do you have in your retirement plan today? Take a look at how long it took you to get to today's amount and extrapolate it out until you retire and if you will not have at lease one million dollars available then your plan is not working.

The average real estate appreciation since 1968 has been 6.34 percent per year. Some years it is less and some years it is more, but the averages has been 6.34%. Real estate investing is a great way to build wealth. The chart below shows what could be possible if you decided to develop a plan to invest in real estate.

I have made certain assumptions when I created this plan. I used an average of 6 percent increase in the value of the real estate per year. Each new home purchased was done at the first of the year so the increase in the value of the home was calculated for the year purchased. After you purchased your first home no more out of pocket money was invested. All homes and commercial properties purchased produced a positive or near positive cash flow through rent because I did not want you to change your current life style.

The starting home value was $150,000. Some areas the price of a single family home is much more and some areas the price is much less. I used $150,000 because I am investing in the Rio Grande Valley area of Texas.

You will noticed that after the purchased of the first home no new properties were purchased until year 4 because you did not have enough equity for the down payment in the next property. Year 7 and 8 two properties were purchased each year to average the total homes to one per year. At year 10 the investment strategy changed from single family homes to commercial properties such as apartment building, warehouses or strip malls.

Year 4 one home was purchased for $200,000 using 10 percent down or $20,000 of the $28,652 equity build up over the last 3 years of your first home. I always left enough equity available after the purchase to allow for time to find a renter and to cover the costs of any repairs that may be needed in your investment properties. Year 5 one home was purchased for $220,000 with a $22,000 down payment. You will notice that at the end of year 5 you will be controlling $658,547 of investment properties. ... www.rgvre-team.com/a07-buy-one-house-a-year-for-wealth.php. ...Continue