How to turn $30,000 into $100,000 in 10 years by Investing in Real Estate.

 

Is it Wise to Invest in Real Estate in today’s HOT MARKET?

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How to turn $30,000 into $100,000 in 10 years by

Investing in Real Estate.

Myth:            Cap Rates determine values in investment real estate.

Question:     Do you mean todays cap rate, or the cap rate 10 years from now?

Answer:        The goal is to get started in investment real estate to realize big                                          returns over time.

Yes, even though today’s prices do not seem like it’s the right time to buy, my years of real estate experience have showed me two things…

 

1. Prices do not ever go down; they have stabilized but never drop.

2.  You cannot find a safer or better return for your money than real estate.

 

Data shows that home prices over the last 25 years have increased on average 5%

per year and more in recent years.

 

The average price of a home in the United States 50 years ago was $24,000 and today it is $278,000 nationally and $240,000 in Lancaster county.

 

Average rental income on a two-bedroom unit in Lancaster: $1091 per month.

 

What looks like a low return today can turn into a huge profit in just 10 years.

 

If you are you looking for a safe way to invest your money,

then please see the examples below:

Two-bedroom house on the market for $90,000 with a rental income of $750 month.

 

At first glance this may not seem like a great investment offering only a 6% cap rate, but after a closer look over a 10-year return, things may look different.

Cost to purchase:

Home Price:                                  $89995.00

25 % down payment:                    $22500.00

Closing Cost (approximate):        $  5000.00

 

20-year mortgage at 4% interest for 20 year term:              $409.00 per month

20-year mortgage at 3% interest for 20 year term:              $375.00 per month

(Lets be conservative and use the 4% interest rate):

 

Cost to own:

 

RE taxes                                      $2313.00 per year             $193.00 per month

Property Insurance (est)              $  650.00 per year             $  60.00 per month

Management fee 8%                   $  720.00 per year             $  60.00 per month

 

Tenant pays $750.00 per month rent and all utilities – lease ends 5/2021. Current rent is under market value.

Summary:

Monthly Income from tenant:                                                    $750.00 per month

Monthly cost to own:                                                                   $722.00 per month

Positive cash flow:         $336.00 per year or                          $  28.00 per month

 

At first glance this deal really makes no sense and this is why most never realize the benefit of owning investment real estate – but please read on.

Here is why this property is a great deal – even with only a $28.00 per month positive cash flow in its first year.

 

There are many factors that can get overlooked by even the most seasoned investor.

As we mentioned earlier, the average rental income for a two-bedroom unit in Lancaster county is $1091.00 per month.

Remember also that home prices increase on average 5% or more per year.

Taking those two factors into consideration – lets take a look at a 10 year plan for owning this property with a current $28.00 per month positive cash flow and how you can turn your $30,000 into $100,000 profit owning just one property.

Image if you could do this just once every year for the next 10 or even 20 years.

                                                                                                                                              

Let us first look at conservative rent increases over the next 10 years.

 

Current year 1                     $750 x 12 = $9000.00    or           $28 x 12 = $336.00

Year 2                                    $850 x 12 = $10200.00     or        $128 x 12 = $1536.00

Year 3                                    $900 x 12 = $10800.00     or        $178 x 12 = $2136.00

Year 4                                    $925 x 12 = $11100.00     or        $203 x 12 = $2436.00

Year 5                                    $950 x 12 = $11400.00     or        $228 x 12 = $2736.00

Year 6                                    $975 x 12 = $11700.00     or        $253 x 12 = $3036.00

Year 7                                    $1000 x 12 = $12000.00  or        $278 x 12 = $3336.00

Year 8                                    $1025 x 12 = $12300.00  or        $303 x 12 = $3636.00

Year 9                                    $1050 x 12 = $12600.00  or        $328 x 12 = $3936.00

Year 10                                  $1100 x 12 = $13200.00  or        $378 x 12 = $4536.00

 

Total positive cash flow over 10 years while your tenant pays the bills:        $27660.00

Granted some costs will increase slightly and you may incur some maintenance along the way but at nowhere near the rate of rent increases.

Plus, you will realize the appreciation of the home and profits from the sale – see more below:

 

Current Home Value:                                                                   $90,000.00

We will look at a conservative 5% a year increase in value, the average for our nation:

2020                                                                                                  $90,000.00

2021 plus $4500                                                                            $94,500.00

2022 plus $4725                                                                            $99,225.00

2023 plus $4961                                                                            $104,186.00

2024 plus $5209                                                                            $109,395.00

2025 plus $5469                                                                            $114,864.00

2026 plus $5743                                                                            $120,607.00

2027 plus $6030                                                                            $126,637.00

2028 plus $6331                                                                            $132,968.00

2029 plus $6648                                                                            $139,616.00

2030 plus $6980                                                                            $146,596.00

 

Mortgage payoff in 2030 if you only pay the original mortgage payment of

$409.00 per month = $43,094.00

Let’s now look at the facts

 

Original investment                                                                         $30,000.00

Positive cash flow over 10 years                                                     $27,660.00

Equity in home after selling in 2030: $146,596 - $43,094 =           $103,502.00                                               

**Your positive cash flow covers your original investment and the sale of the home nets you $100,000.00 in real cash profits.

This assuming a very conservative increase in value and a still under market monthly rent.

Versus earning 1-2 % bank interest on your original $30,000 might equal $6000 total return.

**Your actual results may vary and are not guaranteed.

 Yes, there are many variables in Real Estate investing:

 

1. Location

2. Condition

3. Property management

4. Knowledge of the industry

5. Finding good tenants, etc.

 

One thing is certain however, hands down real estate has been the number one wealth producer over time and there are professionals that are willing to help you along the way.

If any of the above information seems of interest or value to you, or if you just have questions, feel free to call me anytime. I can help you through the process and help you find the right property for your needs and budget.

Call or text today, I would love to help open the world of real estate investing to you.

Jim Bull – Realtor

Lancaster office: 717.553.2500

Cell phone: 717.951.5620

Home office: 717.584.3296

Click Here  to search for property anywhere 

How Does Exercise and Nutrition Affect Our Immune Systems

In these ever changing times our lives are being turned upside down with the goal of not infecting  the masses with the dreaded CoVid-19 infection.  We know so little about this new flu or virus and information and guidelines are changing daily on what we are required to do to fight the battle. It can sometimes be overwhelming at the least.

One thing I do believe however is that the healthier we are, the better chances we have at fighting whatever new virus may come down the road. Since we are all on a "stay at home order' it was impossible for me to go out and interview any professionals on the subject.

So i did the next best thing and looked to the internet to try and learn some things. My disclaimer here is that I am not a health professional so please do your own research. I've listed all the sources for the below information and its up to you to decide whether its good advice or not.

I can tell you though, that since recently embarking on my own health improvement adventure that I feel better, have more energy and am sick less than I was just three short years ago.

So I went online and searched - Does exercise and nutrition improve our immune system which helps fight off sickness and disease. Below is what I found:

Does exercise help or hinder our bodies’ ability to fight off infections?

The latest science suggests that being fit boosts our immune systems, and that even a single workout can amplify and improve our ability to fight off germs.  March 4, 2020  www.NYtimes.com

Does exercise help your immune system?

Lifestyle changes like exercise and a healthy diet bump up your levels of IgA, a protein in your immune system that fights infections. It helps keep threats out of your body -- and zaps any that do get in.   April 16, 2020  www.webmd.com

What if I can't go to the gym?

Being in isolation without access to gyms and sports clubs should not mean people stop exercising, according to a new study from researchers at the University of Bath. Keeping up regular, daily exercise at a time when much of the world is going into isolation will play an important role in helping to maintain a healthy immune system. March 31, 2020   www.sciencedaily.com

What about my diet?

Good nutrition is essential to a strong immune system, which may offer protection from seasonal illness and other health problems. ... Vitamin A helps regulate the immune system and protect against infections by keeping skin and tissues in the mouth, stomach, intestines, and respiratory system healthy.  Dec 9, 2019  www.eatright.org

How can Protein benefit my body?

Protein is an important resource for enhancing immunity because it helps form the cells that operate the immune system. “The amino acids that are found in protein form the building blocks of all the body's cells – including the cells that power your immune system. Dec 1, 2017   www.biprousa.com

Healthy ways to strengthen your immune system:

Your first line of defense is to choose a healthy lifestyle. Following general good-health guidelines is the single best step you can take toward naturally keeping your immune system strong and healthy. Every part of your body, including your immune system, functions better when protected from environmental assaults and bolstered by healthy-living strategies such as these:

April 6, 2020  www.health.harvard.edu

Don't smoke.

Eat a diet high in fruits and vegetables.

Exercise regularly.

Maintain a healthy weight.

If you drink alcohol, drink only in moderation.

Get adequate sleep.

Take steps to avoid infection, such as washing your hands frequently and cooking meats thoroughly.

Try to minimize stress.

Click Here For Info

Recap

I know, you're saying enough already, I get the point. Let's face it, there are many things we can do to help stop the spread of this life threatening disease such as following the Presidents health guidelines on social distancing and hygiene. 

But taking the steps above and taking care of your body will not only help you get through this crisis but will prepare you for any more that come. Take it from a 50 plus year old baby boomer that's experienced a total revitalization in life. Just by loosing some weight and staying fit, you can get a new lease on life. 

If you don't already, now is the perfect time to start exercising and eating right. If you don't know where to start or need some help let me know.  I have access to a great plan for nutrition and I know some of the best trainers in the business.

Call or text 717.951.5620

What Are You Looking For in 2020

Isn’t it always the age-old question as we enter a new year and a new season – what will this year bring?

Maybe not, I’m sure there are some of you who are focused and have clear goals and a plan of action in place. Whether it be for your relationships, your career, your racing season or just life in general.

Or maybe you’re like many of us and you know what you want but just don’t have a clue how to get there. Below find a very true quote I found floating around social media last week that applies not only to our morals but to all that we do in life.

In the image above Chief Sitting Bull (no relation) talks about feeding his inner self. About whatever he gives the most attention and thoughts too, that emotion or action will prevail.

Have you found that your life is much the same? Have you ever wondered why? Or maybe you just don’t know why you are getting the results you are.

Unfortunately, many are never taught information like this. I know I hadn’t been exposed to anything like this until I was in my late 20’s, oh how I wish someone would have explained this to me earlier in life.

Let’s look at another angle and see what the Bible has to say along similar lines.

The above scripture comes from the Book of Matthew 7:7-8

Ask, Seek, Knock

7 “Ask and it will be given to you; seek and you will find; knock and the door will be opened to you. 8 For everyone who asks receives; the one who seeks finds; and to the one who knocks, the door will be opened.

**Below message is for both believers and non-believers**

Now, I’m not sure what your beliefs are but wouldn’t it be great if it were just that simple. Wouldn’t it be great if you got every sale you asked for, or that every person you asked on a date said, yes.

Maybe you just need a few extra bucks to get through the week, wouldn’t it be cool if you just asked this imaginary God and an envelope showed up on your doorstep.

I’m here to tell you that if you will dig into the scriptures in the Bible and that if you can have the unshakable Faith, that God wants you to have everything that you need and desire.

That if you’re willing to trust in God, then take the actions described in those words in the Book of Matthew, that your envelopes will be full, that you’ll have the relationships you desire and that you will reach all your goals in the coming year.

I’ll ask you to not take my word for it, but to explore these truths for yourself. To reflect when there was a time you needed something and said that little prayer and it miraculously came true. When maybe you had some fear holding you back and you broke through the barrier and took action, and all of the sudden it really wasn’t that bad after all.

I must urge you to be careful here, however. Let’s return to the wisdom that Sitting Bull shared with us above. This principle will work for both good and bad.

If you seek good and productive things you can achieve that goal but in the same token, if you are feeding yourself or seeking negative or unproductive thoughts you will get the equal result.

So make yourself a promise in this new year and this new season. That you will ask for what you need and have faith it will be given. That you will seek out new ways to improve your life and that you will knock on the door of happiness and results and accept it into your life.

One last thing, even if you have to go hide in a corner to do it. Read that little black book called the Bible and ask God daily for your wildest desires.

As always, if you need help or have questions, contact us here or at Jim Bull Talks on Facebook.

https://www.facebook.com/Jim-Bull-Talks-664276770301656/

Let 2020 Be Your Best Year Yet

Hi everyone - hoping you all had a joyous holiday season. Christmas is a time that we are supposed to spend time with our family and reflect on the many blessings that we have received through out the past year.

Of course, the season can mean many different things to individuals depending upon your beliefs and outlooks. I know that not everyone feels Blessed at this time of the year. There could be many reasons you are happy but their may be many reasons why you're not.

I would ask you no matter what your current circumstances are, whether it was the best one ever or whether you were feeling lost and all alone, to believe the best is yet to come.

Of course that is entirely up to you and what actions and beliefs you partake in the coming year. I know many of you reading this already believe that we celebrate Christmas because of Jesus' birth. That God sent his son to earth 2000 plus years ago to carry the weights of the world and to set us free.

I'm sure that many too who may be reading this either don't believe or aren't quite sure what to believe. I'm also sure that if you've read this far that you either do know Jesus' love or that you are looking for an answer, wondering how 2020 could be your best year yet, or maybe just even a little better than what 2019 was.

At this point I could quote many scriptures from the Bible that I believe hold the keys to wisdom and happiness in this life, but today I want to quote you one of my favorites, Its not one we typically associate with this time of year, but one I believe is the key to success and happiness while we spend our years walking this earth.

Matthew 7: 7 says - Ask and it Shall be Given.

The Bible tells us that whatever we ask God for that if we believe thru faith, that it shall be granted to us by Him. Its such a simple concept yet so easy to forget or hard to believe. You see there is the key, knowing who God is and believing that he wants to Bless us beyond our greatest imaginations.

Please be careful here and use some wisdom however, because this can work for the good or bad.

I've been a believer in Christ for over 20 years now and I've found just recently again, even when my Faith lacks, that God comes through and takes care of me. In times of sadness, worry, financial struggles, it doesn't matter what you've been through and what you are going through today, that God has a great and glorious plan for you life.

That if you'll just be open and turn to Him, that He will make you smile again and again and Bless you with your greatest year ever in 2020. 

I know many have lost loves ones, are suffering with disease or sickness, maybe you've lost your job or way to support your family. I will tell you though, that if you want things to get better and if you open your heart to God that life can be grand. 

I'm not saying you'll become rich, or that your sickness will be cured, but I can tell you that your heart can be happy. It's up to you, the answers are at your fingertips, never easy but always worthwhile. Go ahead, give it a try, what do you have to lose compared to what you may have to gain.

If you need guidance on how to get started just reach out to us here or on FB, ask a friend, pick up a free Bible at a local thrift shop or just google it on your phone.

Go ahead, God is available and just waiting for your call.

Have You Done Your Mid-Year Checkup

Written for my racer friends but applies to anybody...

So, we’re midway through the 2019 racing season and I just wanted to check in to see how you’re doing, not only with your racing efforts but in your life as well.

With that question being asked - GOD WANTED ME TO TELL YOU, it shall be well with you this coming year. No matter how much your enemies try this year; they will not succeed.

You have been destined to make it and you shall surely achieve all your goals.

The paraphrase above comes from that little black book that I talk so much about – the Holy Bible. The scripture comes from one of the major prophets in the old testament.

Isaiah 3 (NLT) says:

10: Tell the godly that all will be well for them. They will enjoy the rich reward they have earned!

11: But the wicked are doomed, for they will get exactly what they deserve.

Now this can apply to everything you are trying to accomplish in life including your relationships with others, your work career, what you do for fun and of course your results on the racetrack.

There is a catch however and it’s found in the beginning of each of the verses above. You see whether you know it or not, God has great plans for your life. He wants you to have the best of everything.

But on the other hand, his competitor the Devil, he wants things to go the other way for you.  He wants you to crash, not to finish the race, not to get the things that God has so grandly planned for you.

I know the Devil tries to make the bad or wicked things look cool, but unfortunately, it’s just his way of leading you into the bad line, to get you to cut the course and as verse 11 above states you’ll get exactly what you deserve.

The good news is that if you seek God, that if you make the effort to learn how he would like you to live that you will finish strong, that you’ll earn the riches you so greatly deserve.

I would challenge you not to believe me, but to find out for yourself. Start each day by just talking to God and then listening to what you hear back. To download the Bible App and read just a little bit of scripture each day. It doesn’t matter which, just choose one and read.

You just might be surprised what you find.

As always, if you need help or direction, contact us here or at Jim Bull Talks on Facebook.

The 5 Most Important Things In Life According to Charles Stanley

From Jim Bull's October Chaplains Corner

“Obey God and leave all the consequences to him” – George Washington Stanley

Image by Jodie McCarthy

In an autobiography I’m reading by Doctor and Pastor Charles F. Stanley he claims this was one of the most important life lessons that his grandfather Pastor George Washington Stanley taught him that had a profound impact on his life.

He says in his book, as a matter of fact, if God told you to run head first into a brick wall to do it, and to know that God would make a hole to fit your head through by the time you arrived. What Faith!!

Charles Stanley, if you don’t know him is 86 years old and has been lead pastor of First Baptist Church in Atlanta, Ga since 1971. His “In Touch Ministry” over the years has been broadcast in 107 languages around the globe. Pastor Stanley has had a major impact on local churches and has changed the lives of millions.

I wanted to share with you the “Top Five” beliefs that he has incorporated into his life that he recommends that we do with our lives.

1. The most important thing in your life is your relationship with God.

2. Obey God and leave all the consequences to him.

3. God will move heaven and earth to reveal His will to you if you really want to know and do it.

4. God will provide for all your needs.

5. God will protect you.

I’m not sure your beliefs but would encourage you to step out on faith a little and give the above strategy a try.

2 Chronicles 16:9

The eyes of the Lord move to and fro throughout the earth that He may strongly support those whose heart is completely his.

For prayer or to learn more please contact us here or follow along on our Facebook Page – Jim Bull Talks.

Lessons from the Congo - repost

I believe I wrote this for a church newsletter 3 - 4 years ago, but I can't say exactly when. I found it on my hard drive today while looking for some other material and thought it worth sharing.

Lessons from the Congo

By: Jim Bull

Every Sunday when I wake I wonder to myself, what lesson will I learn at church today? My family and I started attending New Danville about six months ago and I can honestly say that it was Gods Hand that led us here. The congregation has welcomed us with open arms and every time I attend I feel God working in my life and see him making a difference in my family’s life. 

This past Sunday would be no exception. As I awoke I remembered that we had a combined service and I told my family that we should get to Church a little early, that it was going to be crowded. I forgot completely however that we were having visitors from half way around the world.

As the service started the pastor from one of our sister churches took the stage and gave us some background on our visitors and then their worship team took the stage. They sang in a combination of English and French and my first impression was wow, this is really loud and it’s really not the way I worship.

Secondly I saw my young grandson and he seemed a bit afraid and I knew that his mother had been suffering from a migraine headache for a week. I’ll just be honest with you here because God already knows, I thought to myself, maybe we should have just stayed home today.

A few minutes into their singing however I could see the joy from the group in the message they were sharing. I saw members from the congregation with their hands in the air and people on their knees praising God. I looked at my daughter to try and get a read on her thoughts and she says to me, “Dad, this is awesome”. I asked her how her head was and she said it’s the first time in days that she had no headache. Yes, God is in control.

As the worship team finished and Pastor Maurice and his wife took the stage I was finding myself mesmerized in the message and totally impressed in the way that they praised and worshipped God. As they told their story I thought to myself about how weak my faith is at times, about how Iittle I really do to serve my God, the same God that they serve.

And again I hate to say it, but I thought it so I’ll share it. About how we as Americans and I’ll speak for myself here. About how I take for granted what God has provided for me and my family.  About how selfish I am with Gods message. About how I can set in a pew on Sunday mornings and not jump completely out of my skin for my love for Jesus. About how I can worship on Sunday knowing what Pastor Maurice and his family knows and not go sing it to the world.

I thank God that he delivered our Congo brothers and sisters to New Danville last Sunday morning. For their trials and tribulations and for the message of joy and thankfulness they share because of it. For their sold out belief that God is the only reason we exist, that he is leading the way and for reminding me that we need to be joyful and share the message of Jesus Christ to the world.

May God continue to bless their efforts and may they continue to be faithful to him. I know I am better for it.