This is my plan for investing in real estate.

In the U.S.A. nine in ten rich people used real estate as the main mean of investing. Why?

Because renting houses and apartments is a big service to society. The government cannot do it efficiently. So, it is giving us, the entrepreneurs, all the initiatives and advantages to do it, one tenant at a time and we do it as small or big business to get all advantages.

This is the action plan:

* Buy real estate using leverage, to control the big mortgage with a small down payment, using other peoples' money (OPM);

* Buy residential or commercial real estate at a low price to get instant equity;

* Make improvements to add more value/equity to your property;

* Appreciation in time adds to equity in top of improvements;

* Lease, collect rents and manage the cash flow wisely;

* Use depreciation, create legally a paper loss on business, and offset earned income from job to lower your overall federal tax;

* Refinance for cash out up to 70% of equity, these are not taxable money;

* Reinvest the cash from refinancing to buy a bigger property using leverage (OPM) and keep going, making money.

Do improvements to optimize appreciation, refinance for cash and buy again a bigger investment!

This way you achieve the snow ball rolling effect.

With four or five transactions in nine years or sooner you may control over one million dollars in assets. This is the magic of investing in real estate.

I would have liked to have a plan outlined like this one, before I started in real estate investing and managing properties for profit nine years ago.

Residential real estate investments - well done - pay the mortgages, taxes, and utilities expenses with money coming from tenants' rents.

You will learn how to use financial and legal tax advantages to keep that money, from resources shared with you at my website. Taxes and accounting for real estate have a special flavor because the legal advantages available. You can take advantage of them too. The big action plan is here.
I do not keep it secret.

Enjoy and work at your personal plan.

For your benefit I added two e-books for free downloading: "The Manager' Surviving Kit" and 140 pages book Ken Envoy wrote, called Make your Content Pre-Sell. It teaches how to write for the web.

SURPRIZE! My new site is working. We are selling "The Escape - Confession of a Refugee" for only $24 "My escape e-book story."

Enjoy until next issue! Thanks

Ernest