Acquisition Terms

Control & Negotiate

Minimize Down Payment & Monthly Payment

Operating Terms

\ Disposition < Terms

Maximize Cash Flow

Maximize Cash Out

Creative Clauses & Offers

Creative Clauses & Offers

Creative Management

Creative Management

Creative Financing as Seller

Buying, operating, and selling is a dynamic process. What you do at one point in the process will affect many other parts of your investment picture. Successful investors understand the way all the parts affect each other and the results that are achieved. If you can understand this, you will make more informed decisions and more positive choices along your path to becoming a millionaire.

The first step in getting clarity is to have a standard model to use for comparison. Then, as you make changes from that standard model, you can see what the impact is on your cash flow and your return on investment and see how great that impact is. Let's now look at how Terms can affect your cash flow and ROI by isolating the variables.

Our standard model looks like this: $100,000 current market value, 20 percent discounted purchase price, 20 percent down payment, 5 percent annual appreciation in market value, 5 percent annual appreciation in rents, initial monthly rents at 0.8 percent of market value, expenses and vacancy at 40 percent of rental income, and a 30-year loan at 7.43 percent. We will compare the annual cash flow and annual return on

Standard Model Investment Comparisons

($100,000 price, 20% discount, 20% down payment, 5% annual appreciation of value and rent, initial rent at 0.8% of value, expenses/vacancy at 40% of rental income, 30 year loan with interest rate of 7.43%)

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Empowered Success Bible

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