In this day and age, the residential housing market is very unpredictable. Because of this, it’s a very good idea to consider the more stable market of rural property. Rural property doesn’t experience the same shortcomings that poison the currently unstable residential housing market.
Real estate has made more millionaires than any other business in the market. How you may ask? A great many of them did it by using Real Estate Leverage.
Leverage is really a quite simple concept. Leverage permits the investor to benefit from the exponential growth of Real Estate while merely contributing a small amount of their own money. Real Estate Leverage is essentially to use loaned money to increase your own profits. Building up to these huge profits almost always requires the use leverage.
Let’s say you have $100K to invest and you select a piece of vacant land that costs all of your money. After 1 year, suppose it goes up in value by 10%. After 1 year, your lot is worth $110,000. At the end of year 2, it’s going up to $121,000. Land investment done this way will essentially yield a 10% return on their $100,000 cash investment.
Now, let’s assume you only have $1,000 to put towards the same $100,000 parcel of land. Just like in the previous example, the value goes 10% every year so after year 1, the land is worth $110,000 and in the 2nd year it goes up to $121,000. That’s a growth of $21,000 over the course of just 2 years. Leverage gets you profits 10 times greater than your initial investment.
Although there is interest to pay when you make a Real Estate purchase, you’re paying off the remaining balance with deflating dollars. Think about what you could do with $100 10 years ago as opposed to how far $100 will take you today. The dollar is losing value and inflation is very real.
At Land Sales Company, we give you the opportunity to take advantage of Real Estate Leverage by offering you land for sale with very affordable down payments and no credit check, reasonable financing so that you can realize your dreams of land ownership.
Add Comment