You may have seen an email earlier this week on a 10-home development project in the San Francisco Bay Area.  This opportunity presents a high return for investors in a short period of time. We had a tremendous amount of interest in the project, so I wanted to mention why this type of project is right for some people. As you know, I have mentioned that California has a ways to go before the shadow inventory burns off, jobs stabilize and we're back to equilibrium. Holding for the long-term in CA doesn't make sense to me right now because cash-flow is not as high as other states, and price appreciation in CA won't happen for years to come in most areas. However, manufactured or forced equity growth can happen. If you find a distressed property, fix it up and resell it, you can make money - especially with the added tax credit incentives to buyers right now. But not everybody has the time or expertise to take on the risks of such a project. That's why Real Wealth Network set up a private money fund called Network Capital Fund. Folks who want to put their idle dollars to work can get the benefits of flipping without having to put in the time or effort. If you have an equity line and are paying 5%, but stand to make 15% in the fund, you could earn 10% passive income on borrowed money. This kind of return may be higher than if you were to use the equity line for buy & hold property because the interest payments cut into the cash-flow. For example, if you had a $200k equity line and used it to buy cash-flow property, your return would be approximately 6-8% because you've got to account for the cost of funds. But if you put that $200K into the fund, the return might be 15% - $30,000 cash. Now if you used that cash gained (not the equity line) to purchase rental property, your return would double or even triple vs. using 100% borrowed money. PS - If you can find a fantastic deal, we may be able to fund it. We raised $3M in a weekend for the 10-home development project. We would like to know about the good deals you find. Don't let lack of financing stop you. We can help you raise the  money. To Your Health & Wealth, Kathy and the Real Wealth Team

Tags: California, Private Money Investing

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