Saturday, May 5, 2007

Equity Repositioning and the "Rule Of 72"

In commercial Real estate you hear the words "Cap Rate" a lot. This refers to your
capitalization rate or in other words your positive return. In a good commercial deal
you may get a nice 6-9% cap rate (In our current Market) Let's say on the upper end you get that 9%. You feel like it's a good deal, it's secured with Real estate. The EIUL from the previous article can often raise less than that annually.
Now lets look at Albert Einstein's "Rule of 72." If you have a nicely diversified
portfolio with a great EIUL and some residential Real Estate, and you are making
an average annual return of 9%, divide that into 72 to see how long it takes your
investment to double. Just about 8 years right. Pretty straight forward.
Well what if I could tell you of a Real Estate "Joint Venture" That would make
you a multi millionaire using the rule of 72 by the time your EIUL or your
commercial Cap Rate come close to doubling. Wouldn't you want to know exactly
what I am talking about. If not, please click the white X in the red box in the top
right corner of your screen.
I am not going to explain the whole JVA in just this article because I want you
to really understand that the equation REO + Cash = WEALTH.
Ready to know more?
Please e-mail me and I will give you the details.

rockey_finance@yahoo.com

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