Hi!
I want to let you know that the best real estate buying opportunity of the last 70 years is ending and I need to make sure you are aware of all the options you may have to be part of it, before it’s over. Don’t just dismiss real estate because you assume it is risky. If you have investments and don’t like losing money, you owe it to your self to spend 5 minutes learning about an alternative to the high fees and erratic returns of Wall Street.
I run a private investment company in Arizona called Low Stress Investments where I partner with people on cash flow rental properties. They supply the money, I do all the work and we split the profits. My goal is to create an investment experience that eliminates all the headaches and worries that normally come with investing.
You would get a fixed return (currently 7%) no matter what happens to the property and every vacancy or expense comes out of my profit. I do all of the work for free until you receive your promised return, then I get whatever profit remains. All of the liability falls on me and I set it up so the taxes are insanely simple (you just add one number to your own return, or your profit might even be tax free).
Sounds good, but I just don’t have the money to buy real estate:
If you have equity in your primary residence, you have the ability to borrow money from the bank at 3 – 4% and invest it at 7%. You spent your whole life building your good credit, now you can put it to work for you by taking advantage of the lowest rates in history. If you did a cash out refi of $100,000 the investment would pay your mortgage for you and when the rental property is sold 10 years from now, your mortgage balance would be paid off and you’d be left with a profit of up to $40,000. A $200,000 cash out could make you $80K over the next 10 years. These are just a few of the hundreds of structuring options.
CLICK HERE to learn more.
Wall St. never wants you to find this out, but you can use your 401K and IRA funds to invest in real estate. It’s called a “Self Directed IRA” and it is almost exactly like your traditional IRA. Only difference is that you get to pick what you invest in, rather than being limited to a list of funds that Merrill Lynch or Fidelity will manage for you. They only let you invest in their funds because that’s the only way they can charge you fees. Investors are starting to take control of their own destiny and everyday thousands of people are diversifying part of their portfolio out of equities like stocks and into more secure tangible assets like real estate. House prices are so low, that you could have the money to purchase multiple properties with your retirement funds.
CLICK HERE to learn more.
Another option is to buy the property with financing. This mean 20% down instead of 100% so we need less cash to pull off a deal. If you have good credit and high income this may be a good way to do one house. Unfortunately this is much more complicated than the two options above. Not impossible, just more moving parts that are harder to explain and much more work, but it could all be worth it for the higher return.
CLICK HERE to learn more.
Okay, so you realize you do have the money to buy real estate but you could never use retirement funds because real estate is too risky:
If 100% of your money is in cd’s or bonds that may be true, but if you own stocks and mutual funds, you’re taking risks that I don’t take in real estate.
Stocks have the potential to make you a high return but they also have the potential to quickly lose you a lot of money, like last month when the Dow dropped 1000 points.
If you don’t like losing money here is what you need to know about stocks vs. real estate.
If you buy $100,000 worth of stock and ten years from now it only sell for $80,000, you LOSE $20,000.
If you buy a $100,000 rental and ten years from now it only sells for $80,000, you still MAKE $50,000+.
A majority of people focus on how much a house goes up or down in value but that’s not where most of the money is made in real estate. If we use $100,000 and buy a house cash, it can bring in over $9,000 a year in profit from rent. That’s a 9% return that comes in every year regardless of what the value of the house is. The rich in America know that the safe steady money is made owning cash flow assets and that’s how they stay rich while the rest of us lose during recessions chasing after appreciation that keeps going the wrong way.
Here’s the bottom line. What I do isn’t perfect for everyone. If you enjoy managing your own investments or if you think you can do much better than 7% over the next 10 years this probably isn’t for you. Just realize you probably need the stock market to go from 12,000 to 23,000 to beat that return if you rely on mutual fund managers to grow your money. How confident are you that will happen? I’m a finance major and I can’t predict with any certainty where the stock market will be in 1, 5 or 10 years from now because it has gotten so amazingly complex.
Can you? If not, aren’t you just gambling with your retirement?
Think the experts on Wall Street know better? You might not be so sure after reading this letter from an ex insider. CLICK HERE
You know that real safe investments like cd’s, bonds and annuities are only paying 1 – 4%. On June 1st the 10yr Treasury note hit an all-time low of 1.46%. It’s safe, but can you survive on that rate of return?
Warren Buffet says “Buy, Baby Buy” when it comes to real estate and you can view that article by CLICKING HERE, but even more importantly he says you shouldn’t invest in anything you don’t understand. Give me 5 minutes to explain what I do and I believe you’ll understand exactly how you can earn 6-7% every year using real estate. Compare that to how confident you are in where the stock market will be in 10 years and then decide for yourself whether you think your money is better in bonds, stocks or real estate.
CLICK HERE for a step by step detailed description of exactly how it works and remember I have a lot of flexibility to customize things to meet your needs. So if you love the general concept but have unique needs just call me. I can do 100 different customizations, I just can’t put them all on the website.
The Clock is Ticking:
I wasn’t exaggerating at the top of the page when I said this is the best time to buy. The hardest hit areas of the country were having a fire sale on houses the last year as homes sold for less than they did 25 years ago but those once in a generation bargain home prices are getting harder to find as more and more investors rush into the market.
Greater West Phoenix – Single Family Homes (inside the 101 / Non Short sale)
| Houses under $60,000 | Houses under $100,000 | |
| January 2011 | 336 | 1043 |
| May 2012 | 6 | 55 |
There is a reason investment companies can only offer you 4% fixed, and it is because it is really hard to make money in today’s world. What I do, isn’t magic, the ONLY reason I can safely do 6-7% is because homes are so cheap. I’m getting homes for $85,000 that have an insurance replacement value of $150,000. That rarely happens in history and it doesn’t last for long periods of time. We can’t bet on appreciation and assume that someday these homes will sell for $200K and we’ll make a lot of money. It might happen, but no one knows for sure so that’s a gamble and I don’t gamble with other people’s money. The only thing I am sure of is that I can get around $900 a month in rent and I can use this property to generate about $9,000 a year in profit so I can safely promise an investor around $7000 a year. That’s a big enough cushion to handle any problems and still get you your money EVERY year.
Right now we can get into a home for a total investment of $100,000 which allows me to pay 7% ($7000/$100,000)
If home prices continue to rise and it takes $120,000 to get into a house I can still only pay $7000 if I want to keep it safe, which only gives the investor a 5.8% rate of return. Not horrible, but not as good as if they were able to get in at $100,000. The beauty of real estate is that the cost of the house is our biggest expense and we lock that in the day we buy, so we can also lock in our great return. Get in at $100,000 and you can make 7% every year we own the house. The stock market can’t do that every year.
It is scary how quickly the inventory is shrinking and how fast prices are rising so if you have any interest, just give me a call and I’ll give you any information you need to make an informed decision as to whether this type of investment can meet your needs. I don’t want to pressure people into doing this. I’m just out to find the people who want my help.
If you love the whole concept but really don’t have the ability to do anything, I can pay a $500 referral fee per house. If your boss or rich uncle wants to buy 4 houses with me, you could make an easy $2000 just for sending them this letter or giving them a link to my site.
If you have some money but not enough to get a full house, there are options. Just tell me what you’re able to do and I’ll try to customized a plan.
Realize that I didn’t just wake up last week and decided to buy a real estate course off a late night infomercial. I’ve been studying traditional investing for 16 years and I’ve spent more time and money learning about real estate investing over the last 10 than I did on my four year college degree.
CLICK HERE to get a better idea of who’s watching your money.
Once house prices hit a certain point it doesn’t make economic sense to buy them because the rental income won’t be enough to justify that much investment of capital. The expected return will be too low and the conservative professional investors like myself will stop buying. I may stop buying at the end of this year or possibly as soon as the end of this summer if prices keep jumping. That’s also when the newspapers will start printing articles about how much homes have gone up and how great real estate is right now and all the newbies will jump in to buy because they think it’s easy money and then we start counting the days till the next crash.
So if you’ve ever wanted to invest in real estate this is the safest it will ever get. Prices and interest rates may never get this low again and you’ve got a trained professional willing to work for free who’s shielding you from as much of the risk as possible.
Call or email me today if you have any interest or want to know more.
Thanks for your time.
Steve Buschta
LowStressInvestments.com
SteveBuschta@gmail.com
623-703-8993