Power in Numbers

20 people put in $420 dollars a month that’s a little over 5 thousand dollars a year which adds up to one hundred thousand a year.

Each year as a corporation you buy a foreclosed home.  Make sure there is no leans on the property and that you can rent it out for at least a thousand dollars a month.  Each house you buy and rent will bring you in 12 thousand a year around 10 thousand after paying property taxes.

After 8 years from the rentals you will be brining in 80 thousand plus the hundred thousand from the twenty people that’s 180 thousand dollars that year.  By this time you should be well experienced enough to start buying two foreclosed homes a year.

In 9 years you will have at least 10 houses. 10 years 12 houses bringing in 220 thousand a year, 11 years 14 houses 240 thousand, 12 years 16 houses 260 thousand a year.  You should be able to start buy 3 houses a year if not sooner. 13 years you will have 19 houses.  14 years 22 houses.

At this time you put all the houses in a hat and draw out who gets what house, which you could trade each other if you wanted and still have two houses to play with.

5 thousand a year after 14 years is a 70 thousand dollar investment, paying $420 a month.  That is about one third of a house payment a month and a little over one third the time of a 30 year loan to own a house.  It is about one third the cost if you minus the interest on a 30 year loan.

Now that you all have houses and no house payment and all the experience in this field I don’t expect you will stop.

You will have to sit down as a group and hash out everything that could go wrong especially with each other and put on paper how each dispute will be handled and put it in writing and all sign.

Things like if someone misses 3 payments in a row they are out.  You will need to find some one else to buy in at the same price everyone else has put in at that time for them to get their money back minus 10%.

You need to incorporate and put all the money in a bank account in the corporation’s name.  Have a chosen group who all need to sign to get the money out to purchase homes.  Don’t use the money for anything else because you will always need money to fix and pay for none rentals.