Hey @Marc Bodinger (And everyone else!)
Like @Jon Klaus said, a lot of my strategy hopes in using 1031 exchanges. Sure, the government might end that someday - but I doubt it, since it is essentially the government partnering with successful investors. They know that good investors, in the long run, will make more money for them than T-bills or other investing opportunities.
I actually wrote the eBook last January or February when I started my old blog. I did, however, develop this idea over the past 5 years. It actually works much better today than in the past, because (in a lot of areas) cashflow is so strong. This could change.
For those reading this thread - I'll give a brief outline of my strategy so you don't need to read the whole book:
Buy cashflowing properties, preferably a 4plex, for $100,000 that cashflows $200 per unit (total of $800 per month) with a 20% down payment. Property should be bought 20% under-value and have room for a 10% appreciation during year one (starting amount and only contribution: $20,000)
Save all cashflow for two years, which is about $20,000 (a little less, but close). Use that as a downpayment on another cashflowing property with the same numbers as above.
Rinse and repeat once more.
Sell all three four-plexes and use the proceeds to buy an apartment building - using the same ratios as above (20% down, $200 per unit cashflow, 20% undervalued, 10% appreciation).
Hold for a few years, saving cashflow. Rinse and repeat.
Of course, this plan is purely "ideal." However- all the numbers are not unreal. Every property I buy, and many others on BP would agree, have to work out like this.
Is it hard to find these properties? YES.
is it hard to find these properties if you only need to find one property every two years across the entire US? I don't think so.
Anyways, I'll post the PDF in the FilePlace, @Karin DiMauro, for a free download, but this is basically the idea!
The important thing is - this is just a guide. It's not fact, or a "guru" plan. It's just my philosophy, put to real numbers. I think this is important for people to do when they begin - create a plan. It might not work out the exact way planned - but that's okay. If it takes 7 years - awesome. If it takes 10 - awesome. 20? That's ok too.
Hope that helps sum it! Thoughts?
Brandon Turner, BiggerPockets
E-Mail: [email protected]
VP of Growth
Author of The Book on Investing with No (and Low) Money www.bit.ly/1zwDCQi