Options
Example 1 - *Refinanced four units
*Value - $1.2 million
*Loan - $518,000 *(No
cash out)
*Term Of Goal – 60
months
*Results- Created cash
flow of $2447 per month
- Invested
at 9.5% - Value in 5 years: $187,005
Value in 10 years: $481,375
Example 2 - *Refinanced property for $300,000 cash
out
*$300,000 for 10 years @ 9.5%
- value = $792,725
*For 15 year term – projected
value = $1,240,378
*Property cash flows breakeven
each month
Example 3 - *Client sells property for $1,085,000
/ Nets $448,788
*Invested net proceeds at 9.5%
projected growth
*Results - 10 years - $1,156,103
asset value
- 15 years -
$1,855,556 asset value
*Added value of examples #1 and #2 is both properties
have strong equity remaining.
Assets are performing in two/more markets.
*All results are estimates.
*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.
None of the examples represent guaranteed results.
Please
consult your tax professional for advice.
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