| Going from a seed capital account of $25,000 and | | | | are particularly suited for this purpose) and do your |
| turning it into One Million Dollars in 10 short years is | | | | research to make sure the block is large enough to |
| simple, lets look at how this could be done. | | | | make 2 new blocks. Sell the blocks off individually for |
| In this investor run sheet, we will assume you are | | | | a 30% or more return. |
| looking for 30% returns. All investors know that a | | | | Repeat this process for the following transaction but |
| 30% return is a reasonable expectation and is within | | | | at higher and higher price levels in better and better |
| the ball park of possible. We will be using capital gains | | | | parts of town. Once you reach $100,000 you have |
| in real estate to make 14 transactions over 10 years. | | | | enough to start re-habbing homes. This is about |
| That is just over one a year. | | | | transaction 6 Buy and sell larger and better homes, |
| If you will take a calculator and punch in the number | | | | making sure to utilize as much of the seed capital as |
| 25000 and multiply it by 1.3 which is the same as | | | | you can but making sure you are getting equal or |
| 30% and do it 14 times, you will see how the money | | | | better value for each transaction. |
| compounds into $1 million dollars over those 14 | | | | Your last few transactions will be easy. Having all that |
| transactions. | | | | seed capital, you will not even need the banks |
| Your first transaction should be land because your | | | | money, but the final piece to the puzzle, is leverage. |
| seed capital is quite small at this stage. Raw land is | | | | When you borrow money, you utilize leverage. Your |
| cheaper because obviously, there is no house on it. | | | | $25000 initial seed capital account is big enough to |
| The first purchase, you will do a professional | | | | borrow nearly $90,000, so in this sense, the above |
| investors stock in trade. The humble land subdivision. | | | | returns are magnified dramatically. Anyone could do |
| The idea is simple. Find large blocks, (corner blocks | | | | this within 4 to 6 years. |