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DRE #02059058
TRAPPED EQUITY CASE STUDY

Exchanging for a Development Opportunity

A PROPERTY WITH UNDER UTILIZED EQUITY
Increased monthly cash flow by $717
Large lot provides opportunity to build additional detached unit for additional rental income OR ability to knock down structures to build a 6 unit complex
With average appreciation of 5% over 10 years, the condo would be worth $416,997 and the new lot would be worth $877,974!

11330 West Brentwood Circle, #C, Corona
2 bed, 2 bath – 1095 sq. ft. condo Purchased as an REO, 9/7/2012, $115,000, $71,250 loan
Was rented for $1,750 per month
Monthly expenses of $1,055
Cash flowed $695 per month
Sold for $256,000 on 4/24/2020

1031 to 9250 Olive Street, Fontana
3 on a lot (separate detached structures). (2) 2 bed/ 1 bath, (1) 1 bed/1 bath, 18,000 lot. $539,000 purchase price with $377,300 loan, 4.125% interest, no new money, closed 8/18/2020. +$8,000 initial repairs and leasing fees.
Currently rented for $4,600 per month
Monthly Expenses of $3,188
Current cash flow of $1,412 per month

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.