Highlights: Ben Franklin’s MARVELOUS Plan to Wealth is a far better plan than the average current 5% positive cash flow of today’s Landlord! ONE MILLION DOLLARS PER YEAR of unearned income for the rest of your life with a ONE TIME investment of $100,000 in one or several businesses is not unreasonable! Can ANY Landlord say that? Indeed, Current Residential Investors have the money, brains, skills, and drive to be the Bus Drivers of New Businesses! The rest of us will be employees and partners on their Business-Buses-to-Prosperity(TM)!
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New Tax Changes will encourage Current Landlords to invest less in residential property and MORE in Businesses that produce MORE goods, MORE services, MORE jobs, and MORE income and business tax revenues. There will be MORE for ALL!
NOTE: In some areas, Landlords are lucky to have a 5% positive cash flow (rent income minus mortgage and expenses), some even have a negative cash flow. Some are HOPING for positive equity (property value) increase decades in the future.
NOW, today, without any tax changes, Ben Franklin’s MARVELOUS Plan to Wealth is a far better plan than the average current 5% positive cash flow of today’s Landlord! Ben’s plan will benefit everybody; it will benefit our Nation.
We love people getting rich, but not at other peoples’ expense; we do not like landlords getting rich at tenants expense causing tenants hardship and financial dead ends. EVERYONE can prosper, if we encourage Current Residential Investors to invest in Capitalism: the production of goods, services, jobs, and income and business tax revenues!
Attention Landlords with 100% equity: One lucrative economic theory is to have a low percent of equity in any real-estate property. This increases leverage> and increases Gain/Risk ratio at the low cost of the lowest loan interest rate. A Landlord who wants maximum return on investment could take out a 80% low interest mortgage and reinvest some/all in investments with much greater yearly returns, OH MUCH GRATER! I look at the interest as cheap insurance for the 80% money in my control. Money that I can do anything I want with. I can buy a new car at a discount with cash, paying mortgage interest, rather than a much higher auto loan interest.
With a 80% mortgage your leverage is FIVE times greater! With a 80% mortgage you get ALL the equity Gain while the lender takes 80% of YOUR Risk for a FIVE times increase in Gain/Risk Ratio! Those two advantage alone maybe worth the small loan interest amount. Note: If housing values drop 50%, the most you can lose is 20%, while the lender loses 62% of their loan, which ends up in your wealth package (if you decide to default on the loan; you may want to, or you may have to, if you are recklessly invested heavily in non-liquid assets. The choice is yours). If you had 100% equity, you would lose 50% of the HIGHEST equity value of the property! You have no choice. This has happened when a large employer has left, a nearby disaster, or a recession.
In disasters, equity value has dropped to near ZERO. If you had a 80% mortgage and some liquid assets, you lose 20%, and could rent a house the next day, and buy a new house ASAP, and receive disaster money years later. If you had 100% equity, you lose it all and may not even be able to rent a studio apartment! You may be able to get disaster money from the government, but that has taken years for many. It has happened; it will happen again.
For the best possible gain a investor can invest in a business and a person or persons recommended and advised over the life of the business by a SCORE.org mentor. It will be easy to find a “worker turned manager” who will work for twice their current wages, plus a good benefit package, plus 10% of the profit! The business will prosper much more, if the manager gets 10%. That means you get 90% of profits minus expenses for the LIFE of the business! The Gain on your 80% mortgage money is almost unlimited, while the Risk is small! Investing in several businesses will reduce Risk to near nothing!
ONE MILLION DOLLARS PER YEAR of unearned income for the rest of your life with a ONE TIME investment of $100,000 in one or several businesses is not unreasonable! Can ANY Landlord say that? Ben Franklin is pleased! Or $100,000/year with an one time $10,000 investment.
Current Residential Investors will not be going to the poor house! NOT AT ALL! These are the smartest people among us. They will adjust and prosper even more than ever before! The tax free sales of their excess properties (more than five units) will set them and their ENTOURAGE FOR LIFE! Many Current Residential Investors will shift five rental units to some of their children, relatives, and friends. And many current residential investors will invest in many new start up businesses, producing more goods, more services, more jobs, and more income and business tax revenues! MORE FOR EVERYONE, INCLUDING MORE FOR THEMSELVES!
Indeed, Current Residential Investors have the money, brains, skills, and drive to be the Bus Drivers of New Businesses! The rest of us will be employees and partners on their Business-Buses-to-Prosperity(TM)! Today’s landlords are the ones who will make this happen!
The Landlords that have Property Managers do all the daily work, will have Business Managers do all the future daily work!
Yes, Smart Property Managers will also adjust and prosper!
Read the entire article: Prosperity Thru Tax Changes!
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