residential real estate-as an investment?

[trenhard]

real estate , def

 

[Sub-0]

Just closed a deal for my parents and a partner of theirs and they purchased a $1,250,000 two family in Boston and are getting a 17.5% cash on cash return using leverage as they purchased with 25% down.

Real Estate is one of the best investments that I know of.

You have 3 forces at play:

Cash on Cash return

Leverage: You put 25% down and have someone else pay all your bills so it is essentially buying a $100 bill for $25

Capital Appreciation: The property rises in Value while you own it.

So in the case of the above property They purchased a $1,250,000 building for only $312,500 and are getting a cash on cash return of 17.5% and at the end of the mortgage or more likely way before the end of the mortgage the property could be worth $2,000,000.

PM me if anyone wants to get rich and build a nice real estate portfolio

thanks for explanations