Wednesday, March 14, 2012

spend $25,000 For $1 Million Dollars In 10 Short Years - Here's How

Going from a seed capital account of ,000 and turning it into One Million Dollars in 10 short years is simple, lets look at how this could be done.

In this investor run sheet, we will assume you are finding for 30% returns. All investors know that a 30% return is a reasonable hope and is within the ball park of possible. We will be using capital gains in real estate to make 14 transactions over 10 years. That is just over one a year.

Higher One Account

If you will take a calculator and punch in the whole 25000 and multiply it by 1.3 which is the same as 30% and do it 14 times, you will see how the money compounds into $1 million dollars over those 14 transactions.

spend ,000 For Million Dollars In 10 Short Years - Here's How

Your first transaction should be land because your seed capital is quite small at this stage. Raw land is cheaper because obviously, there is no house on it. The first purchase, you will do a professional investors stock in trade. The humble land subdivision. The idea is simple. Find large blocks, (corner blocks are particularly noteworthy for this purpose) and do your explore to make sure the block is large adequate to make 2 new blocks. Sell the blocks off individually for a 30% or more return.

Repeat this process for the following transaction but at higher and higher price levels in better and better parts of town. Once you reach 0,000 you have adequate to start re-habbing homes. This is about transaction 6 Buy and sell larger and better homes, making sure to use as much of the seed capital as you can but making sure you are getting equal or better value for each transaction.

Your last few transactions will be easy. Having all that seed capital, you will not even need the banks money, but the final piece to the puzzle, is leverage. When you borrow money, you use leverage. Your 000 initial seed capital account is big adequate to borrow nearly ,000, so in this sense, the above returns are magnified dramatically. Whatever could do this within 4 to 6 years.

spend ,000 For Million Dollars In 10 Short Years - Here's HowLec 14 | MIT 5.60 Thermodynamics & Kinetics, Spring 2008 Video Clips. Duration : 47.07 Mins.


Lecture 14: Multicomponent systems, chemical potential. View the complete course at: ocw.mit.edu License: Creative Commons BY-NC-SA More information at ocw.mit.edu More courses at ocw.mit.edu

Keywords: thermodynamics, kinetics, equilibrium, macroscopic-systems, state-variables, law-of-thermodynamics, entropy, Gibbs-function, reaction-rates, clapeyron, enthalpy, clausius, adiabatic, Hemholtz, catalysis, oscillators, autocatalysis, carnot-cycle

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