The IDEAL™ Wealth Building Principles of Investing

The wealth building principles are associated in the acronym IDEAL™

These principles help us to indentify Real Estate we believe is an IDEAL™ investment.

Income
When a property is rented out it produces income to pay for its own investment. When more income is generated per month than monthly expenses it produces positive cash flow.
Deductions
In addition to interest payments and expense deductions we are also allowed to take depreciation deductions as well, these combined deductions can create significant tax benefits for us.
Equity
As tenants make our mortgage payments for us a portion of those payments go towards principle reductions, this is equity build up for us.
Appreciation
Each year the value of Real Estate goes up in value 25-year average is a 6% gain per year.
Leverage
When we borrow money from the bank to purchase Real estate (usually 95%) the 5% we invest is leveraged to generate returns on the full amount of the purchased property. Example (we put $10K in to purchase a $200K property as that property appreciates at 6% a year this is an increase of 200K x 6% =12K in appreciation. 12K from a 10K investment is a 120% return on our $10K investment).

As an investment encompasses each one of the wealth building principles we give that investment that star. (Exp) as an investment utilizes leverage we give that investment A STAR for Leverage. As an investment utilizes the deduction principle we give that investment the Deductions star.

All of our properties will be identified as having our IDEAL™ rating.

You can be comfortable knowing when looking for investments EBG is providing you with good sound investment opportunities.

 

   

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The Equity Builders Group
Keller Williams Realty
35095 U.S. 19 N.
Palm Harbor Florida. 34689
Larry Arth 727-808-8735
Fred Collis 727-216-8279
Fax 727-216-8101

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