MFN Network
From The MFN Group
The MFN Response to the Mortgage Meltdown and Credit & Housing Crisis!
Real Estate Investment
Owning Rentals
(The Real Estate market right now is not totally representative of how it functions usually. Therefore, in long range planning, you may consider these simple illustrations as accurate.)
If you buy a rental house and rent it out, and it is worth $200,000, then over 10-15 years, a tenant can virtually pay it off for you. You are paying your mortgage, maybe with a small tax deductible negative cash flow, but they are paying you rent. This is a way to pick up $200,000 using leverage of someone paying you rent, over 10-15 years. (We assume you will use our system to accelerate the mortgage)
Own 3 Rentals
This is the same scenario. With 3 rentals, you should be able to pick up three $200,000 properties in 10-15 years. That is $600,000 in earnings using leverage. We are not counting income tax savings here or appreciation, but both of those are huge.
Own 5 Rentals
This is the same scenario. With 5 rentals, you should be able to pick up five $200,000 properties in 10-15 years. That is $1,000,000 in earnings using leverage. We are not counting income tax savings here or appreciation, but both of those are huge.
Own 10 Rentals
This is the same scenario. With 10 rentals, you should be able to pick up ten $200,000 properties in 10-15 years. That is $2,000,000 in earnings using leverage. We are not counting income tax savings here or appreciation, but both of those are huge.
The pure tenant-rental leverage principle is laid out here, even if highly over-simplified.
This is a way to huge net worth!
All you need are ways to pay the rentals off fast and knowledge on how to obtain the rentals and wisely select them!
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