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Volume #2 Issue #5 |
2009 |
 Wow! Spring is here. We see vibrant green leaves growing on some 100 year old nut trees, the tulips blossoming, the mother goose joyfully swimming with her newly born goslings on the river. What a beautiful sight. This universal substance of life reflects Mother Nature’s abundance and growth. Are we growing? We take a moment to reflect on our lives. Kudos to Daniel; he has finally cleared up his debt. We are adjusting to the new environment and developing our independence in Southern Ontario. Julia has started her exercise routine back up since January. We are speeding up our learning curve on real estate investing. Essentially, we realize we need to take care of some completes and deletes in life. Lots of time and energy has spent on our move and furnishing our home, change of address, provincial ID’s, medical services plans, setting up new office and service lines, organizing our financial house, reconciling accounts. While going through backlog mails, Julia has found a 0.99% promotional AIR offer for $25K from her credit card company. Cha-Ching! We now understand why Raymond Aaron keeps saying each mess is a lock in the gate which keeps abundance out. This month has been the focus of cleaning up our messes: physically, financially and mentally. Gorgeous Georgia We love Atlanta, Georgia. Out of all the cities in the U.S. we have been to, we consider it to be the most scenic city with an unbelievable amount of green space.  This city might be strong proponents of greenery. This city also has highly advanced infrastructure and has attracted some world reknowned high tech companies to move there. It all adds up, if you’re looking for a solid place to invest in the U.S. Take a look at this picture of us standing in front of the 300 million year old Stone Mountain. It is 1,686 feet above sea level, has a circumference of 7 miles around and exposes 20 billion cubic feet of granite formed by volcano. It is the largest, exposed granite dome in the world. You can enjoy a stunning view of the Confederate memorial carving of Stonewall Jackson, Robert E. Lee, and Jefferson Davis by going on the Summit Skyride.Fast Track to Apartment Investing We spent four intensive days with Scott Scheel in Atlanta, Georgia. What a refreshing and transformati  onal experience. This man is highly successful in commercial real estate investing and he really knows how to teach well. Rarely do you see real estate teachers in the seminar world showing you strategies they used on their own deals, step by step. Scott does that and much, much more! Now is the time for apartment investing as cash flow is more important than you ever thought it was.Why apartments make strong investments?
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Be prepared to manage your loan to value and allow plenty of equity in today’s market; keep yourself liquid if the returns are lousy. Many of us will get apartments where a management company is not an option, yet, 50% of what you need to be successful in apartments is the management part.
The Power of Leverage $200K asset leveraged you can get at 20% down. You could probably get in for no more than $10K if you use seller financing or other people’s money, where you control $200K asset for $10K. This has an net operating income of $20K. Then $1394 per month on the 190K at 8%, that is $16,728 per year which leaves $3,272/ year in positive cashflow. That is $3272/10,000 which is 32.7% return. Do you have other money earning 32% A YEAR? On a $200K deal you can get a 4 unit building depending on your market. Take this small asset and raise value over the course of a year, then you have an asset base. If you were able to increase rents by $25 per month per unit, or $100 per month, or $1200 per year, or at 10% cap rate is $12,000 of additional value on your property every year. You are then earning a 120% per year. If the cashflow is there, it works. The Millionaire Mind Intensive – June 18,19,20 Our sincere apologies to the people or companies being spammed by the company impersonating us. If you have any comments and suggestions, we appreciate you letting us know. - T. Harv Eker
Daniel Lynes and Julia Lee Lynes |
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extended period of vacancy, there was many hidden repair costs: damage inside the walls, clogged drainage line, unopen windows. The whole extent of the termite damage could not be determined by our inspector. We ended up spending much more money on rehab than we originally budgeted. We found a lot of anchors near the property, and we knew the city had a urban renewal plan. We thought it was a decent neighborhood for blue collar tenants. We didn’t make money from equity but the monthly rent supports the 1% unit rule ($100,000. house you should collect at least $1,000./month or more). Most of all, we learned a number of valuable lessons to be shared in the next issue, please stay tuned.
ller status on Amazon. It shows you how to define and invest in each phase of the real estate market: Seller’s market I, II and Buyer’s market I, II. 
passed down to the tenants. An apartment is leased by the unit and it is not uncommon to have an expense ratio of 40-60%. The former typically has a lease term of 3 years or more, which can be quite attractive for the bank to finance. The latter typically has up to 1 year lease term and it is generally more management intensive.
