Why Real Estate, Basic Model

Buy $1,000,000 worth of Real Estate. Borrow the $1,000,000. Rent the property to make the payments. In 20 years when the building falls down, the loan is paid-off and you own the land.

Bonus

If the inflation rate is 10% this year, the property will increase in value 10% (i.e. $1,000,000 * .10), you make $100,000. Borrow against the property to get $100K out and raise the rents 10% to cover the additional payment.

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