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Real Estate Investing Business Plan 2017-2022 Updated 1-8-2017 Just The Facts The following computation is a simplified investment plan to get an approximate NET yield of 23.845% from 2017-2022 utilizing an initial cash property investment of $65,000 with a average rental income of $700 a month. The sample formula that is used contains real values for Real Estate, ROI and Rental Income. Tax and Insurance expense were also calculated. It has been spread over the 6 year received period from 12/31/2017 to 12/31/2022.The only calculation used from year to year is a annual compounding calculation. There are no future anticipated values or time adjustments. Real Estate is the only real $ hedge against inflation for everyone because of values. The formula: Investment amount 65,000. at a 12.5% Net annual Yield = $66,773.62 - 12/31/2022 + Property Appreciation on the 65,000 at a 7.5% Annual Value Yeild = $35,314.60 - 12/31/2022 + Re-Invest the Net Profit from the Rental Income at 5% Roth IRA = $ 8,151.53 - 12/31/2022 + US Inflation Rate estimated at a 4% average (Cost of Money) = $17,245.74 - 12/31/2022 - Pre-Tax and Tax Deferred Yield 23.845% Note: In the calculation your Social Security is considered as a off set to inflation after age 65. At age 65 your ROTH IRA account balance will be $408,321 based on $458.33 a month contribution from your Rental Income for 30 years You'll then be able to withdraw $25,297 annually for 30 years. Inflation was 2.82% from 1984-2014, "30 years" or the total inflation was 130.06% $25,297 in 1984 is $57,197.83 in 2014 dollars. So therefore your $25,297 in 2044 will be valued at about 50% of the purchasing power you have today declining to 25%. The above value is considered level or $25,297 because of your additional Social Security Income. In conclusion approximately 1,500,000. needed less 408,321 = 1,091,679. Net is needed from Real Estate Investments. Real Estate Investment : Contact Us
PROPERTY INVESTMENT OF $65,000 AT 12.5% NET ANNUAL YIELD (SECURED)
YIELD +$66,773.62
YIELD + $35,314.60
US INFLATION AT 4% ANNUAL (-COST OF MONEY ANNUAL)
YIELD - $17,245.74
END RESULT YEAR 2021
$66,773.62 + RENTAL INCOME ROI FROM PROPERTY INVESTMENT OF $65,000
$35,314.60 +US ANNUAL REAL ESTATE APPRECIATION AT 7.5% NATIONAL AVERAGE
$17,245.74 - US ANNUAL INFLATION AT 4% (3%-4% AVERAGE IS NEEDED FOR GROWTH IN AMERICA)
$84,842.48 + PROFIT REALIZED YEAR 2021 FROM A $65,000 INVESTMENT 5 YEARS
REINVESTED THE NET PROFIT INTO A ROTH IRA @ 5% RATE OF RETURN FROM THE STOCK MARKET MUTUAL FUNDS
Today you need $750,000 to retire with Social Security Benefits for 27 years.
$5,500.00 ANNUAL FOR YEARS (TAX DEFERRED)
ROTH IRA VALUE YEAR 2022 (6 YEARS)
$8,151.53+ Compound Interest monthly @ 5%
It is estimated that you will need approximately $742,000 Net Equity in your real estate holdings to retire. ROTH IRA VALUE YEAR 2027 (10 YEARS)
$21,096.12+ Compound Interest Monthly @ 5%
It is estimated that you will need approximately $855,000 Net Equity in your real estate holdings to retire. ROTH IRA VALUE YEAR 2034(17.5 YEARS)
$62,883.81+ Compound Interest Monthly @ 5%
It is estimated you will need approximately $950,000 Net Equity in your real estate holdings to retire. ROTH IRA VALUE YEAR 2047 (30 YEARS)
$408,321+ Compound Interest Monthly now on the Declining Balance @ 5%
It is extimated you will need approximately $1,100,000 Net Equity in your real estate holdings to retire. Effective ROI on entire Investment Plan 2017-2022
66,773.62+ Rental Income current year +12.5% Housing Rental Income/Expense ( IRA Investment Tax Deferred)
35,314.60+ Appreciation Factor Annual @ +7.5% Real Estate Owned (Tax Deferred)
17,245.74 - Inflation Factor 72 Months @ -4% <Dollar Value Loss>
8,151.53 + IRA @ +5% (IRA Investment Tax Deferred)
92,994.01 + Totals
15,994.01 + Annual
65,000.00.....Investment Amount
23.845% NET ANNUAL over 72 months
RESI - Real Estate Secured Investment
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Average CD Rate As Of 7-14-2017
Product Rate Changes Daily~WSJ |
