How To Turn $20k Into $200k With Real Estate

finance Sep 24, 2021

If you have your first $10k or more congratulations as you are only part of 25% of people who have $10k saved in the bank. $10k is the first major benchmark as this is when you can finally start to make some decent investments that will create wealth.


While I love stocks, businesses, cryptocurrencies, and real estate I truly believe that if you don't have much money real estate is one of the best places to invest your money (real estate vs stocks)


Stocks Vs Real Estate


Let's say you want to invest $20k in an SP500 index fund and you get 10% return which is the historic average. If it goes up 10% then you have $22k. What makes real estate so phenomenal is that you can leverage your money. A $20k downpayment using FHA loan at 5% down would give you a $400k asset. FHA loans allow you to put 3.5%-5% down. IF that $400k house appreciates by 5% then you'll earn $20k giving you a 100% return.  


How I Turned $20K Into $200K With Real Estate In Less Than One Year

I found an REO (real estate owned) property at an auction for $17,500. Instead of using my personal money I got a $25k personal loan and used the remaining $6k for renovations as well as $15k of my own money to add a bedroom and bathroom. The house appraised for $75k. Instead of selling and paying capital gains on the profits I did a refinance at 70% loan to value (how you earn money tax free in real estate). This money was tax free.


I took the $52k from refinance and found a 3 unit apartment for $55k. I put in $2500 to finish the purchase and another $2500 for renovations. This property appraised for $96K. I once again refinanced.


At this point I had $171k in properties with $120k tax free back in my pocket to move on to the next deal.


Plus now i'm making $2400 a month in passive income from real estate off of an total investment of $20k (over 100% return).


❎ I am not a CPA, attorney, insurance, or financial advisor and the information in these videos are simply for entertainment purposes only and are not be considered as tax, legal, insurance, construction, engineering, health and safety, electrical or financial advice. IF stocks or companies are mentioned, Shaun MAY have an ownership interest in them -- DO NOT make buying or selling decisions based on Shaun's videos. If you need any advice regarding any of the topics mentioned in the videos, please contact a qualified CPA, attorney, insurance agent, contractor/electrician/engineer/etc. or financial advisor.

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