RAPID WEALTH GROWTH STRATEGY (Real Life Example)
TRANSCRIPT:
How would you like to quadruple your savings with very little effort? Sounds like scam, right? I'm Maria Zondervan. And I teach people how to harness the wealth building power of real estate to secure their financial futures.
And today, I'm going to take you through a real-life example of exactly how you can do this, how you can grow your wealth through passive investing in large apartment complexes. I've been telling you about the power of real estate to grow wealth. But I thought I could maybe give you a real live example to drive that message home, because I don't think people are getting just how incredibly powerful it is and why it's so powerful. So, this is a real live example of an actual deal we have going on right now. So, this is the portfolio of three different apartment complexes, totaling 110 units.
And I want to show you how the returns work for that, and how that can be so very powerful. So, I'm just going to do an example of $100,000 investment in this, I'm just using that number, because it's easy math, right? So, let's say you invested $100,000 In this particular deal, okay, that would result in a cash flow, the first year of about $7,000. That's about 7% on your money. So right there, you're already doing terrific, right. And you'll see that through the life of the hold period on this property, which is eight years, you'd end up with $46,000 of just cash flow on this deal.
Now, that's just the tip of the iceberg. Cash flow is just the profits from the rent and fees after all the expenses are removed, split between the investors that go into this, right. So, every investor that had $100,000 invested in this would get that kind of cash flow. But here, look at year four, it says refi, this means we're going to refinance the property in this year. So, all that means is that that time, the property has increased in value enough that we can put new debt on it, and cash out some of your investments, this is just like refinancing your house and taking the lump sum payment outright. And we can predict when this is going to happen, because we look at long term growth rates of rental income in that particular area. And all commercial real estate is valued based on their income, right, so we can just do that simple math. So that tells us in year four on this property, we'll be able to return $90,000 of the $100,000 originally invest.
So that's huge, because you maintain the equity in this property, you are still an owner, you still get all the tax benefits, and you continue to get this kind of cash flow, even though most of your money has been returned. So, look at the returns here, okay, you only have $9,985 left in the deal, and you're still getting $5,000 of cash flow. So that's a 51% return on your money in that particular year. And you see how that continues on, then year eight comes along, and we sell the property. And again, we can predict what the value is going to be a second be exact, but we can do pretty good prediction of those.
But there should be sales proceeds here of $97,680 per $100,000 invested, that's almost as much as you invested, you're getting back out in proceeds. Okay? So, you've gotten this in cash flow, you've gotten this in sale proceeds, you got the remaining $9,985 of your original money back, you got the other 90,000 Back in year four. So, you've gotten all your money back plus this. So, this is how you take $100,000 and grow it into $244,000 In just eight years.
But we're still just at the tip of the iceberg because guess what, if you took this $90,000, when you got it back in year four, and you put it into another investment that had similar returns, you would have two of these going at the same time using the same pool of money that you originally had, right? So, you'd have this kind of cash flow going times two. So, look at how your income just went up in those years by that right. And let's say you were fortunate enough not to need this income to live off of you could be taking these returns and reinvesting those as well.
And by the time this property sells in year eight, that second property you picked up and year four is probably getting ready to refinance. So now you've got a big chunk of money coming back, right? You got the sales proceeds from this one, plus the refinance from the other so you probably have something in the order of $200,000 that you can now invest into the next deal. You see how does layers on top of each other this is incredibly powerful in growing your wealth. You start with one son, and before long, you have triple quadruple that money, right? So, get in the game, don't wait.
This is super powerful. And this is not even touching all that tax benefits of real estate, which are incomparable and anything else, your stock portfolio cannot do this, okay? And you sure as heck, can't cash out most of your stocks and keep the Sox right, that's unheard of you can do that. So, this is going to bide wealth grow so much faster than anything else. So, I hope this example helps bring that message home. And if I can explain something further or you'd like more information on this deal, or something else we've got going on, please reach out to me this particular deal is for accredited investors only.
But those are not the only ones we have. Okay, so you do not have to be an accredited investor to get these kinds of returns. And you do not have to start with $100,000 That was just for this example. So, reach out to me if you'd like to learn more and I hope this has been useful.