Where are you putting your money in 2012

Lately clients and friends have been asking me about what they should do with their money in 2012.  With a story popping up on the news on a regular basis about another corporate giant stealing money in a scam that defrauds investors on wall street, the average person just wants some simple answers.  Scared of the risk of the stock market they park their money in a savings account where they earn little to nothing on their money.  They are not bad people just simply lacking a little bit on real estate and financial knowledge.
First of all every ones situation is a little different but overall the fundamentals are the same for every one regardless.  Just the other day I sat down with a client/friend and showed him how to take $12,000 and literally get 97% return on investment using real estate.  Now I know most of you are thinking yeah right!  Now hold on before you start walking out the door. There is something that I like to refer to as the “unrecognized gains” that most real estate investors don’t really even understand.
What am I talking about?  If you profit $694 a month on your $100,000 investment property for an entire year that equals $8336 a year.  Here is where the novice investor stops thinking and the wise investor starts.  After deducting $3636 for depreciation and another $6300 in mortgage interest you actual end up showing a loss or $1600 and the IRS owes you another $400!!!  Not bad! It gets better, we still haven’t added in possible appreciation of the property which may have gain a couple percent.
So when your friends are screaming the real estate market is in the tanks and wall street stole their money you can tell them Real Estate Frank  helped you make 97% return on your money!  Stop losing money and let me help you!
Facebook Twitter Linkedin Digg Delicious Reddit Stumbleupon Tumblr Posterous Email

No comments yet.

Leave a Reply