A compilation of Sucess Stories. Very inspirational and content rich.
One thing I noticed was the gross rentals illustrated were all in excess of 10% in most cases.
For example, ( pg 11) a property bought for USD98,000 was grossing USD1,040 per month ( x12 = USD12,600) was was about 12.8% . If you can finance it for 5%, then you have 7.8% to work with to pay all the miscellaneous!
In eg 2 , a USD89,000 house was grossing USD950 per month ( $11,400) , giving gross yield of 12.8%. The financing was at 7.37%.
Eg 3 was a gold mine! A house for $50,000 was rented at $1,010 ( $12,120 per year )!! Giving 24% gross yield! With interest at 7.4%, plenty of room to move!
So, now the idea is to get an RM100,000 apartment and rent it for RM1,050, then I will get 12.6% gross yield too! Current mortgage rate is about 7%... hence 5.6% to play with!
Now, try to get a Gross Yield of at Least 10%.... as Management fee wil take 1% off, Assessment fees 1%, Insurance and repairs 1%. Leaving 7%. If you are conservative , take another 1% off for vacancy loss, leaving 6%. If your financing at the bank is 6%, then you break even. If you are financing from your FD at 3%, then you make 3%!! And if you rental is increased to 12% , then you make 2% ( with mortgage) 5% ( with cash from FD!)
So, it is not so dificult, right?
At pg 179, there was a formula for Marketing, namely :
(1) Concept
(2) Development
(3) Product Launch
(4) Market launch
(5) All system go!
And there was a part where you should live on increased sales, and not debts!
CONTENT rich, plenty of stuff to work your brains with!
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