Interest rates are still in the 5's, even for INVESTORS! If you have been considering buying income property, you have until April to lock in artificially low interest rates. Remember, low interest dramatically increases cash-flow! We have been told that the lenders in Birmingham, Indianapolis and Dallas can finance up to 10 properties! Get a free quote from one of our preferred lenders. ___________________________________

The Market

Monday's S&P 500 Index closing price of 1,147 was at about the same level as in the summer of 1998. So investors who bought stocks 11 years ago are actually down by 25 percent, if you factor inflation. Think of it this way. If you had invested $100K into the stock market in 1998, you'd have $100K today. If you had bought a $100,000 property in Texas, you would have earned over $8000 per year in rental income after all expenses. You would have made approximately $88,000 more than the stock market - based on the cash flow alone. And since Texas housing has seen a modest 4-6% gain every year since then, your property value might have even appreciated $44,000- $66,000 - just enough to keep ahead of inflation. And if you used leverage, you could have bought 5 homes with 20% down that cashflowed $200 each - $1000 monthly cash flow. You could have used that cashflow to pay off one of the homes by now. So today you'd own one home free and clear, 4 others half-way paid off, and over $1600 in cash flow per month. And, you would have been able to write off over $3000 per year per property along the way. Not a bad deal.

Tags: Financing, Interest Rates

This entry was posted on Wednesday, January 20th, 2010 at 11:46 pm and is filed under The Real Wealth Report. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.