Real Estate Investing Is The Best Way To Print Money, Legally! 

How do you print money with real estate investing and get away with it? Most of us fantasized at one point or another finding a printer that can print us money on demand. 

The dreams would inevitably come to the cold hard conclusion when reality hits; you cannot print money because it is illegal and you will be arrested. 

What if I told you that when you invest in real estate investments you are given a bonus by the government which is not only legal but quite substantial? Would you be intrigued? 

If you are not intrigued you should check yourself into a hospital because you do not have a pulse. Money makes the world better and manageable. If you had little money you would not have a home, health care, legal representation and insurance. Everybody needs these essentials and the more money you have the better the type of essentials you can afford to protect your family with. 

I am not here to debate on the importance of money but how you need to get over the fear of having more than enough money. If the idea of having a balance of $28 649 012 in your bank account scares you then you will FAIL as a real estate investor. 

Yes you read right, that is $28 million dollars and its mine. It would have been more but I had some taxes to pay. If I was not a real estate investor I would have pay WAY more tax. 

The government needs to provide housing for all its citizens and it cannot do that on its own. They need your help and mine. By buying real estate investments to rent out you are building and providing comfortable housing for those who can not afford to buy it themselves but can rent it out from you. 

Through out time immemorial the governments of the world have had a symbiotic relationship with the private sector to provide services that the government cannot provide for. In return the private sector bosses can receive ridiculously lucrative tax deductions while making fortunes from providing essential services.

Property is a great investment simply because you can leverage somebody else’s money to make money while benefiting from tax deductions you could not have claimed if you were just a wage earner.

 Here is the simple blueprint of how you print money:

1.   You find an undervalued property (usually distress property or an auction sale)

2.   You finance it 110% from the bank over 30 years at 2% below prime lending rate

3.   You use the remaining 10% to make repairs and improvements

4.   You rent it out for 100% of the monthly bank repayments and rates plus insurances

5.   The tenant pays you security company, water and electricity

6.   You make repairs with the tenants rent

7.   You claim the massive interest on your mortgage, the renovations, 20% depreciation as expenses against your annual salary

8.   You get a big tax return every year while you own it.

9.   You sell the house 5 to 10 years later at two to three times the price you bought it for.

• The buyer pays your realtor’s commission.
• The buyer pays the depreciation tax amount (remember your profit will not be calculated from your original cost price as you have been depreciating the building for the past 5 years at 20%)
• The buyer pays the outstanding bank mortgage 

10.        You still claim the tax deduction that year you sold it as well (you did pay the interest to the bank until you sold it)

11.        You pay capital gains tax with the profit {(original cost price - total depreciation) – (selling price – agent commission – allowed deductable expenses)} x capital tax rate = what you owe from your profits.

12.        You walk away with about 100% the banks investment in pure cash printed legally by you 5 to 10 years ago. 

You used everybody’s money to buy and invest in your real estate deal and walked away with a king’s ransom 5 to 10 years later. Now do that with 3 or more properties simultaneously and real estate investing gets very exciting, very quickly!