Asset Growth
An Investment presents Equity growth and generates cashflow which
is
invested in yet another investment vehicle that creates further Asset growth.
In all of this, the assets that were accessed to fund the Investment(s)
either
grew or are paid back with inflated dollars while generating strong
growth.
Here are examples of recent transactions that
exemplify asset growth.
Example 1
Refinance four units
Value - $1.2 million
New loan -$518,000 (No cash out)
Term of Goal – 60 months
Results:Created cash flow of $2447 per month and invested at 9.5% the
value in 5 years is $187,005; in10 years $481,375
Example 2
Refinance property for $300,000 cash out
Invested 10 years at 9.5% the value is $792,725;15 years the value
$1,240,378
Property cash flows breakeven each month and owner still has $682,000
remaining in gross equity.
Example 3
Client sold property for $1,085,000/ Nets
$448,788
Investing net at projected 9.5% growth asset value in 10 years is $1,156,103
and in 15 years is $1,855,556
Some of the assets are performing in two/more markets.
Performance
of some investments used in examples were much higher
Example 3 – Net proceeds presumed 25% capital gains tax and 7% cost
of sale
These examples present one central truth – Equity presents options
to maximize growth in all markets
All results are estimates
None of the examples represent guaranteed results
Please consult your tax professional for advice
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