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DRE #02059058
TRAPPED EQUITY CASE STUDY

Exchanging for Increased Cash Flow

A PROPERTY WITH UNDER UTILIZED EQUITY
Increased monthly cash flow by $159 after year one
Large lot provides opportunity to build 1-2 ADUs for additional rental income
With average appreciation of 5% over 10 years, the condo would be worth $564,411 and the new lot would be worth $2,227,512!

1001 West Stevens Avenue, #412 Santa Ana
2 bed, 2 bath – 875 sq. ft. condo
Purchased as an REO on 9/30/2009 for cash
Was rented for $1,650 per month
Monthly expenses of $744
Cash flowed $906 per month
Sold for $330,000 on 4/24/2020

1031 to 860 North Stonewood Street
(3) 2 bed, (1) 3 bed, 4-plex, Covington style,
10,454 lot
Purchased 5/27/20 for $1,367,500 with
$957,250 loan, 4% interest, $80,000 new money, closed 5/27/2020; $0 initial repairs
Currently rented for $7,450 per month
Monthly Expenses of $6,660
Current cash flow of $790 per month ($1,065 after 1st year)

Download the Results Recap
OUR INVESTMENT GOALS

01.

Eliminate Management

Harold knew that property management was no longer for him. So, we showed him a series of investment grade commercial properties which are leased to large companies. He was familiar with most of the company names, but was especially impressed when he learned that the tenant managed the property for him and paid all taxes, maintenance and insurance. Harold would finally be out of the property management business.

02.

Acquire an Income Property

Once Harold became aware of net leased commercial properties he had Realty Pro 100 make a study of what properties were available in his price range and where they were located throughout the United States. He even found out that he could buy just an interest in a property which would let him diversify his investment across several properties to reduce risk and create a solid, blended monthly income that was reliable.

03.

Legacy of Cash Flow

At the same time Harold was actively looking for property he met with his lawyer and created a Living Trust in which he could title every new property interest he was acquiring. This allowed him to create a long term monthly cash flow which could easily be passed along to his children along with the tax benefits of a stepped up cost basis when Harold and his wife passed. He actually created a legacy of wealth.

TURNING EQUITY INTO MONTHLY CASH FLOW
THE RESULT OF OUR RAPID EQUITY EXPERIENCE
Property Interest Acquired

We were able to acquire a tenant in common interest in a brand new Advanced Care Medical in Georgia.

Return on Investment

We netted $1,300,000 after tax by selling our rental home. By placing it into the program we now earn 6.25 percent.

Monthly Cash Flow

Our Advanced Care Medical building interest now earns us $6,770 in reliable monthly cash flow.

Expected Equity Growth

The location of our building was based upon excellent demographics. We expect 7% annual growth, plus our cash flow.