real estate property investment 101

THE AMERICAN DREAMTOGETHER, WE MAKE IT A REALITY!

REAL PROPERTY INVESTING 101

Dwight Copeland/Realtor®Point Home Realty - Temecula Valley

$300,000. PURCHASE PRICEThis represents the average price single family home which should carry a breakeven rental value

20% DOWN PAYMENT this would be the initial investment amount that would be required. You can utilize a 401K, retirement fund or savings account

4.0% INTEREST RATE this rate is the rate we will use to calculate profitability of your investment. Contact your lender for current rates based on your financial situation

The Scenario Calculations

The Equity GrowthWith every payment made by the tenant, your principal balance is reduced and your equity increases.

YearEquity 5

YearEquity 10

YearEquity 15

$25,000.00

$60,000.00

$96,000.00Equity calculations are rounded to the nearest $5,000.

EQUITYPrincipal Reduction & Appreciation

NationalAssociationof Realtors

Data

Projected AppreciationMean percentage appreciation by home price expectation survey 2014 Q3.

The Appreciation GrowthThe National Association of Realtors annual appreciation rate nationally. Year

Equity 5Year

Equity 10

YearEquity 15

$40,000.00

$85,000.00

$135,000.00

2.5%Conservative

rate

Appreciation calculations are rounded to the nearest $5,000.

Equity

Growth 2 $96,000.00

Initial

Investment1 $60,000.00

ASSETCalculations

Equity + AppreciationOverall asset growth calculated based on a “Hold15” strategy.

HoldTotal Asset Value

15

Appreciation

Growth

3 $135,000.00

$291,000.00

Savings ComparisonHere we analyze your initial investment gain if invested in a high yield investment portfolio.Year

Growth5

YearGrowth

10

YearGrowth

15

$8,000.00

$17,000.00

$27,000.00

$60,000At 12% APR

Total 15 Year ComparisonWith every payment made by the tenant, your principal balance is reduced and your equity increases.Real Estate

Gain

$231,000.00Savings Gain

$27,000.00

$60,000Initial Investment

HistoryRates byDecade

Lets Talk Rate HistoryThe history of our rates going back 5 decades shows we are at a historical low.

ProjectedRates by

Freddie Mac

Projected Rate IncreaseHere Freddie Mac is predicting that by the end of 2015 we will be averaging over 5%.

Buyer’sPurchase

Power

Effect of Higher RatesAs you can see here, with every upward tick of the interest rates your ability to qualify will lower.

PaymentDifferences

Effect on Asset CostTaking the Freddie Mac rate projections, you can see that a $250K mortgage will cost $60,000 more over 30 years.

12mo Projected Rate

Total Growth

5.5 $218,000.00

Current Rate

Total Growth4.0 $231,000.00

GrowthWith rate variances

Effect on Equity Growth Today its all about buying the interest rate. Every Projection is that rates will rise and as they rise, your growth decreases.

20yr Average Rate

Total Growth

7.0 $206,000.00

calculations are rounded to the nearest $1,000.

Legal and Licensing InformationDwight Copeland is licensed by the California Bureau of Real Estate (License Cal BRE 01943729) and is a full-time Realtor® doing business with Point Home Realty (licensed by the California Bureau of Real Estate -License Ca. BRE #01957516), principal office located at 27247 Madison Ave #200, Temecula, California 92590. Information and pricing are subject to change at any time and without notice. The content in this advertisement is for informational purposes only.

714-598-7407(Mobile Direct)

soldbydwightcopeland@gmail.comE-mail

www.soldbydwightcopeland.com

www.temeculavalleyhomes.info

*used with permission

PERFORMANCE FOR MY COUNTRY PERFORMANCE FOR MY CLIENT