The Typical Way Rental Properties Are Purchased: 1 Property - 1 Down Payment!
It's no secret that landlords typically put a 20% cash down payment on rental properties and are willing to pay high prices - so long as the cash-on-cash (CoC) return on investment (ROI) is competitive.
Case Study #1: Market Value: $300,000 Purchase Price: $300,000 ($0 Instant Equity) Down Payment: $60,000 (20%) Loan Amount: $240,000 Net Monthly Cash Flow: $500/month Cash-on-Cash ROI: $6,000 / $60,000 = 10%
The Wolf Pact Method: Purchasing Multiple Rental Properties with Instant Equity and 0% to 10% Down Payments!
In The Wolf Pact and the Two Comma Movement (TCM) Platform, we collaborate to purchase properties with instant equity and with little to no money at risk. Consequently, we achieve greater returns and control much more real estate with the same amount of money thereby creating far more phantom income (appreciation, depreciation, & debt reduction) than normal.
Case Study #2: After Repair Value: $300,000 Purchase Price + Repairs: $250,000 ($50,000 Instant Equity) Down Payment: $10,000 Loan Amount: $250,000 Net Monthly Cash Flow: $200 Cash-on-Cash ROI: $2,400 / $10,000 = 24%
By now you can see that the investor in case study #2 could purchase six properties with the same amount of money the investor in case study #1 used to purchase just one.
In other words, the investor in case study #2 can own $1,800,000 in real estate vs. $300,000 for the investor in case study #1. Also, the investor in case study #2 has $300,000 in instant equity vs. $0 instant equity for you know who. We'll save the rest of the numbers for another article but you get the picture.
The bottom line is this...
If you have a lot of cash and you need somewhere to park it, owning one property with little to no instant equity and a mediocre return is perfectly ok.
However, if you're falling short on your financial goals and dreams or you'd like to speed things up, the Wolf Pact Method (Collaborative Real Estate Investing) & the TCM Platform is the way to go. We focus on collaborating to reduce the risk, create consistent cash flow & instant equity, own/control multiple high-profit rental properties, and activate multiple revenue streams to accelerate our journey to long-term wealth!
Which path are you taking? We'd like to hear more about it in the comments below! Good Hunting!