Gold Quest

The benefits of income producing property cannot be exhausted. They are many depending on the angle from where you are looking at it. In the last post, we saw how one can repay the loan used to execute the project from the tenancy of that same property without touching his own personal money. Today, I will explain how an investor can benefit from his property from the long term appreciation of his property. As long as you properly maintain your property, it appreciates over time and this has a direct effect on the income that accrues from the property. If an investor obtains a facility of about #25,000,000.00 from a mortgage company with a fixed interest of 7% for the duration of twenty years, If the investor now spreads the repayment of the loan for that twenty years, he will end up using the proceeds from the property to offset his repayment schedule, with little or no contribution from his own personal money. Also, at the end of this period, the property now becomes his, and the revenue will still continue to flow in. Beside this, there will be a cumulative value that accrues to the property over the period of the loan repayments. Assuming that it is just 3%, you will notice that at the end of the twenty years, the worth of the property which was executed at the cost #25,000,000.00, will now be nothing less than #45,000,000.00. That is what your property is worth now, and that will be added to your portfolio. Remember that you did not touch your own money while building this house, rather, you used other peoples money to execute the structure, paid back the loan through that same property, and still at the end of the day, the property becomes yours, the price becoming times two or even more than that, and if you want to sell the property now, you will pocket cool #45, 000, 000, 00. This is not a bad business at all, and very few business with zero risk like this one that can give you this type of returns on your investments. Real estate is really a gold mine, but the question now is, how many miners are there, who are ready to dig deep into the earth and get this precious gold. Your guess is as good as mine. What you need to succeed here is adequate knowledge, patience and working the right people. Of course, you must have your own cash to invest. When you put all these things in place, there is nothing that will stop you from succeeding in this line of business, but when you neglect any of them, then you really need mother luck to succeed. And any business that is depending only on luck or trial and error to succeed is never a business at all.