USA real results

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We have been investing in the USA  long enough now to prove the theories around the market there, especially in Memphis, our favourite city.

So here is an example of a package of 3 properties brought 13 months ago.

Purchase Price June 2010 = $133,900

Quoted Net Return = 12.1%

So how is this package doing?

Well actual return over 12 months = 14.81%, over 20% above quoted returns!

And I asked Jim what we could sell these for today to another investor, (not a retail sale but a wholesale sell).
Answer = $150,000.

Current Valuation is around $165,000

So in the worst recession in modern history in the worst housing collapse in USA’s history we have a 14% net return ACHIEVED and over 10% in capital growth plus around 30% equity.

This is not a hoped for outcome, this is actual results.

If you 50% financed these you would have put in say 70K in total including set up.

You could sell today and pocket around 25K, over a 30% return in 12 months.  But why would you when you are getting nearly a 15% return and the properties will be paid off completely in 7 years if you put the cashflow into paying down the debt?

And if you wait for 2 years you can refinance, take all your cash out and turn the 3 houses into 9!!

Any questions??

Any reason why you shouldn’t be enjoying these results??

Get Going and Stay Safe ~ Dean Letfus

PS:  We have a half share available in the commercial property and another larger residential project returning 16% net, email me if you’d like more info, dean@massiveaction.co.nz