Long-Term Investment In Todays Market?

The stock market is very unstable at this time going up and down while interest rates are so low you want to be a borrower and not a lender. Would you like some suggestions on how can you get the most out of low interest rates while being assured your principal will not disappear while you are trying to make some money? Of course, there is always the danger of borrowing the money and then spending it just because it is there.

So, would you also like to know what is the best way to borrow money at today's low rates without spending it? Buy real estate. Not any real estate but real estate that will hold its value, even if single family houses go down. It is apartment buildings. Because apartment rents are still going up, the value of apartment buildings have the best chance of appreciating while everything else goes down.

Low interest rates mean that you can have a positive cash flow at real estate purchase prices you would have lost your shirt on, even two years ago. Rates are currently 4.5% to 6.5% interest rates when we used to pay 9% for apartment loans just a few years ago. Apartments have become a better investment for two main reasons. First, carrying costs (interest costs) have been going down. Second, income has been going up, substantially. Can things be better than this? YES IT CAN.

I have developed two programs. One is to take people with a small net worth and build an estate or self directed IRA (tax free retirement plan) that is worth up to $800,000 in 15 years and that generates an income of $60,000 per year with both still going up after that.

For those that can put together $100,000 to start I have developed a second program where the numbers come in at $1,300,000 net worth, with a $100,000 annual net profit and in only 10 years. Unbelievable? And, with low risk as well! This comes out to be a 25% annual return with no roller coaster stock market ride. I figured out how to do it and it really works. I have done it before and I know many now retired senior citizens that have done it in the past.

The problem today with most 50+-year-old baby boomers is that they never got started in build a retirement fund. So now, instead of having the normal 30 years to build a retirement fund, they need to be there in 10-15 years. It might take one year of financial hell to come up with some cash. (That means no money for anything except accumulating cash) But after that, it can be a sweet painless ride to wealth. The best part is the possibility of failure is less than 10%, if my steps are followed

First: The money is not touched for 10 years. That is why a trust fund, IRA or a self directed retirement plan is a great place to put this.

Second: I have taken my 30 years of real estate experience to develop exactly which properties will give the biggest appreciation and cash flow and also be the best risks. Interestingly, almost everyone I talk to picks the wrong locations to buy until they hear the whole list of criteria.

Now that I have told you the lazy man's way to riches, let me tell you the downside. You have to have the correct timing on your purchase. In Dec 2001, everything was in place to do these two programs, in Los Angeles County. Unfortunately, by July 2002, the numbers didn't work any more. They did still work in Florida, for example, but not in Los Angeles. What happens is that prices go up after the rates go down. The seller sees how good a deal the buyer can get and raises the asking prices. So! Your timing to start these programs is very important. Do not be discouraged, though. If the numbers do not work today, it will work sometime tomorrow. The system is sound, and since we are talking long-term wealth accumulation, a little patience can go a long way.

About The Author

Willard Michlin is an Investor, California Real Estate Broker, Accountant, Financial Distress Consultant, Well known Public speaker and Administrative/Business Consultant. He can be contacted at his Ventura, California office by calling 805-529-9854 or by e-mail at [email protected] See other article by Willard at http://www.kismetgroup.com; [email protected]

In The News:

7 Vanguard High-Dividend Mutual Funds to Own  U.S News & World Report Money
The 25 Best Mutual Funds of All Time  Kiplinger's Personal Finance
Donate stocks  Doctors Without Borders
Market Timing: The Importance of Doing Nothing  Kiplinger's Personal Finance

Duct Tape

Did you run out to buy that duct tape yet?... Read More

Buy Low - Sell High

Now where have I heard that before? I know. It... Read More

Stock Investment Advice

Stock investment advice is easy to find. Do you get... Read More

Dividend Paying Stocks

I would like to share with the reader an article... Read More

401K-itis

Are you one of those many people who dread reading... Read More

E-mini Day Trading - Day Trading for Beginners - Stock Market Timing Software

I mean it when I say that. While plastic silverware... Read More

NASDAQ 800?

In November of 2000 when the NASDAQ was trading at... Read More

Online Investing & Online Stock & Share Trading: Difficulty in Taking Stop Losses in the Market

This is an extract of an article which was first... Read More

Dont Spend Another Dollar on Business Opportunities Until You Read This

With an insecure job market, overworked employees, insufficient retirement savings... Read More

How To Pick A Mutual Fund

Mutual funds by definition are a mixed bag of stocks,... Read More

Investment Clubs

Because you don't feel too sure about which stock or... Read More

VIX

No, this is not a symbol for some Latin number.... Read More

Box Of Chocolates

Ever have one of those sample boxes of candy? Each... Read More

Prosperity

It has fallen upon the consumer to make our economy... Read More

Series 7 Exam

What is the Series 7 Exam? If you... Read More

Stock Trading - Daddy, Why Arent We Rich?

One Saturday morning, while he was sitting at his computer... Read More

Option Trading Basics

Options trading can increase the profits you make when trading... Read More

Why Technical Indicators

The fight continues to rage among traders who use technical... Read More

How Commodity Trading Differs from Stock Trading

There are major differences between trading stocks and trading futures.... Read More

Prospering with Mutual Funds: How Anyone can ?Afford? an Investment Advisor

Recently I was invited to appear on a live CNNfn... Read More

Duck

Duck! No I don't mean a quack, quack. I meant... Read More

Picking Mutual Funds to Outperform the Market

With over 6,000 mutual funds available, it may be tempting... Read More

Buy and Hold Investment Strategy

"Buy and hold" is one of the most heralded investment... Read More

Trading Tips No 8: Picking the Best Stock Market Price

Carefully thinking through your goal as a trader is of... Read More

Lifestyle Funds Provide Greater Security?

With the stock market stubbornly refusing to settle down and... Read More