Category Archives: Biblical Economics

November, 2015, funnyBiz Wise Investor Report

The Low-Cost Way to Invest in Real Estate Rental Properties to Generate Monthly Income & Have Someone Else Pay for You to Own Those Properties!
Owning investment Rental Properties is a great way to secure your financial future and freedom! But to acquire a loan to purchase investment Rental Property, property that is not your primary residence, requires a 20% Down payment; thus a $100,000 Rental Property would require a $20,000 Down payment! And most folks don’t have an extra 20-Grand lying around! Ah, but there is a way around this obstacle!

Simply make the property your primary residence for the next 3 to 12 months! An FHA (Federal Housing Administration) loan only requires a 3 ½% Down payment for a primary residence; thus just $3,500 to purchase a $100,000 property! However, FHA does require that you live in the property for at least 12-months. A Conventional loan to purchase a primary residence only requires a 5% Down payment, thus just $5,000 to purchase a $100,000 property! A bit more of a Down payment than a FHA loan, but Conventional loans have no “must stay for” requirements; thus you could literally buy, fix-up and rent a property every 3 to 6 months! That equates to you owning 2, 3 or 4 Rental Properties in 12-months! We suggest a goal of owning 10 Rental Properties. Using Conventional financing, you could reach that goal in just 2 ½ to 5 years!

Yes, you have the headache of moving every 3 or 6 or 12 months; but consider the financial rewards: If the average value of each Rental Property is $100,000, in just 2 ½ to 5 years, or at the most 10 years, you will own $1-Million in Real Estate! And someone else is paying for you to own that property! The renters are paying your mortgage payments! When the mortgages are paid off in 10 or 15 or 30 years, you will own that $1-Million in property (plus the increased value of the properties) free and clear and it didn’t cost you one penny!

The perfect Retirement Plan: Each Rental Property should generate between $200 to $500 per month income above your mortgage, insurance and other expenses, thus immediately generating $2,000 to $5,000 per month once you have acquired 10 properties. This money may be used for daily living or, if you can get by without this extra income, use these funds to make monthly interest-only payments to pay down the mortgages quickly, say in just 7 to 10 years, instead of 15 or 30. Now, if each of the 10 properties generates an average rental of $1,000 per month, you now are receiving $10,000 per month! That is a great Retirement Plan! Plus, what a great inheritance to pass on to your kids!

Here are some suggestions on the types of properties to look for: Find a moderately priced residence in a decent neighborhood; a “fixer-upper” is OK too; in a minute we’ll show you how to get an extra $10,000 to $25,000 to re-do the flooring, kitchen and bathrooms if needed, along with perhaps some landscaping for curb appeal. Duplexes, Triplexes and Quadplexes are the best, because you live in one and immediately rent the other(s), which allows you generally to live for free, maybe even with immediate positive cash flow/income! Condos can also be good, because you can buy 2 Condos for the price of 1 small house; but be careful with Condos! FHA will not lend on a Condo unless the entire Condo complex is on the FHA’s Approved Condominium List. Even Conventional mortgage lenders may shy away from lending on some Condos due to the bureaucracy of Condo Owner Associations. And many Condos do not allow rentals. So do your homework. Houses in low to medium income areas make great rental properties because folks in that income range often don’t save up even the 3 ½% FHA loan requirement, thus they remain renters. Plus, unlike higher-income properties, low to medium income renters are less “fussy.” Also, folks at retirement age living on fixed incomes usually are looking for a lower price rental that is in nice condition, and retirees make great renters because they don’t move as often as younger folks and families. do.

How to get $10,000 to $25,000 to renovate each property: Both FHA and Conventional loans have Renovation Loans available, which attach to the general mortgage loan. Once you find the property you wish to purchase, before you finalize the primary residence mortgage loan, you hire licensed contractors to provide Bids for the renovations you plan to perform. These Bids are submitted with the mortgage loan application, and the property appraisal takes into consideration the value of the property after the renovations are done, and the mortgage lender adds the renovation costs to the loan. When the purchase and loan are completed and you take possession of the property, the renovation work by the contractors begins and funds are dispersed as the work progresses in the form of a check made payable to both you and the contractor. When all work is complete, a final appraisal is performed to ensure the work was completed. Without you having to have prior funds available for the renovations, you not only have increased the value of your property, but you also now have a brand new looking rental property that will rent quickly and bring a good rental amount due to the new condition! A good Mortgage Broker will help you acquire the Renovation loan along with the general loan.

Renovation suggestions: With rentals you definitely want to remove any carpeting, especially if the renters may have children or pets; but regardless, carpeting gets filthy dirty, has to be cleaned in between renters, but even cleaning doesn’t make carpeting look brand new. When deciding what to replace the carpeting with, consider that wood and laminate flooring are subject to damage by water in kitchens and bathrooms, or from spills. The best rental flooring choice may be tile throughout the property; it looks great and is durable. Because the grout between the tiles does soil, you should choose a medium to darker color tile and grout. If you prefer the look of wood flooring, there are now rectangular shaped tiles that look just like wood. If you decide to use tile in the kitchen and bathrooms, but want wood floors in the other rooms, “Engineered Wood” flooring is about 1/3 the cost of Hard Wood flooring and is actually more durable, especially in moist humid climates like Florida; but can be a good flooring choice anywhere.

Everyone loves granite kitchen counter tops, so upgrading to granite is a worthwhile renovation. If kitchen appliances are old, replace with new. Make sure bathrooms are clean and modern looking. And of course a fresh coat of paint throughout makes any place look brand new! A couple new palm trees in the front and back yards and flowering plants can give your rental great curb appeal and an enjoyable back yard experience. If you need some color, décor or landscaping ideas, visiting some nearby model homes is a great way to get ideas on current flooring, kitchen, bathroom, paint and landscape trends.

Of course, you are now in the “property management” business, so if you are not a handyman, you will need one to fix broken toilets, kitchen faucets, etc. You will also want to purchase a home maintenance warranty that covers the costs of large ticket item repairs/replacements, such as Air Conditioning units, Water Heaters, etc. These warranties are fairly reasonably priced and you simply add the costs into your monthly rental fee.

There you have it! A viable Real Estate investment strategy that can make you a Millionaire in just 2 ½ to 5 years, even if you acquire just one property every 12 months, then in just 10 years; with immediate monthly income, plus a longer-term $10,000 per month income Retirement Plan!

Options Investing
Here at the funnyBiz Wise Investor Report, we use the Options strategy of Covered Call Writing to generate a 100% Average Annual Return On Investment. With this strategy, you may begin with as little as $1,000, and by earning an average of 100% annually, thus doubling your money each year, your initial $1,000 would multiply in just 10 years to $1-Million, and into $32-Million in just another 5 years!

Covered Call Writing involves purchasing 100 shares of a Stock, then Writing (Selling) one Option Call contract on those 100 shares, with the goal being to earn an average of 10% profit from the sale of the Call Option. The Sold Call Option contract obligates you to deliver the 100 shares of the underlying Stock to the purchaser of the Call contract if the Call Option you sold settles or is exercised At-the-Money or In-the-Money. The Call you sold is Covered because you already own the 100 shares. In this strategy, you do not care if you are required to deliver the 100 shares of Stock, because you receive the Call contract value of those 100 shares, meaning you get your money for the 100 shares, plus get to keep the profit you earned from selling/writing the Call Option. The strategy is to repeat this pattern about 10 times per year, generating an annual return of 100%.

The only risk involved in Covered Call Writing is if the Stock decreases in value from your original purchase price more than the profit you earned, then you may need to wait for the stock price to rise again before Writing another Covered Call on those 100 shares of Stock. Of course, owning Stock that declines in value lower than your original purchase price is the same boat everyone is in who owns that Stock; your advantage as a Covered Call Writer is that you already earned a profit on that 100 shares!

Covered Call Option Positions Traded by funnyBiz
Now that we have made it through the treacherous Market waters of September and October, entering the Christmas season with a stable Stock Market, after the upcoming 3rd Friday of the month Options Expiration date on November 20, we will be looking to Open new Covered Call Option positions. We will publish a Wise Investor Report update at that time sharing with you the Covered Call positions we are trading here at funnyBiz.today.

Each monthly issue of the Wise Investor Report provides education and information that can Save you thousands of dollars and Make you tens of thousands of dollars for a cost of just $10 a month! Secure Your Financial Future by Subscribing Now for Just $10 a month to the funnyBiz Wise Investor Report, and immediately Qualify to be a funnyBiz Distributor, selling Subscriptions to the Wise Investor Report via your FREE funnyBiz Distributor website, Earning our $20 Double Your Money First-Month Bonuses, PLUS Earning 7-Levels of money multiplying Passive Residual Income through participation in our funnyBiz 6-Rank 7-Level 35% to 60% Global Revenue Sharing Income opportunity! You will also receive our Free Daily Jokes, Success Quotes & Funny Videos accompanied with Links to your Free funnyBiz Distributor website, for you to Forward & Share on Social Networks, thereby Driving Traffic Daily to your Distributor website! FunnyBiz is the Fun & Easy $10 Home Biz! Subscribe Now at: http://www.funnybiz.today/site/jim
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A merry heart doeth good like a medicine. Proverbs 17:22
James Alderdice
funnyBiz Distributor
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funnyBiz.today Wise Investor Report Disclaimer
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Options involve risk and are not suitable for all investors. Prior to buying or selling an option, a person must receive a copy of Characteristics and Risks of Standardized Options. Copies are available from your broker, by calling 1-888-OPTIONS, or from The Options Clearing Corporation, One North Wacker Drive, Suite 500, Chicago, Illinois 60606.

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