Why should you be excited about rental properties? First, residential rental properties are the easiest way for a new investor to get started investing in real estate. Investing in rentals makes it possible for you to buy houses using other people's money and earn an income in doing so.

You do not need a single dollar to buy your first rental property. Rental properties offer a number of different ways to build wealth. You simply buy a property and rent it out for more than it costs you to own it. You gain with the appreciation the property realizes, the equity that increases as the mortgage is paid off for you, and the positive monthly cash flow. By purchasing just one rental property you have started the domino effect to acquiring many more. Once you own one property, you can use it to acquire your next, and so on.

Second, rental properties open the door to an abundance of tax strategies. Through potential tax deductions and tax credits, an investor who is used to paying a large amount to Uncle Sam each year can instead keep more of his income and in turn use it to expedite his path toward financial freedom.

Finally, the knowledge and income you will gain through investing in residential rentals will better prepare you for all other areas of real estate investing. You will learn how to establish a large cash pool that can put you in the ball game with the investors that frequent the foreclosure auctions. You will learn that "Cash is King," and if you do not have any, this is the best way to get some.

They pay you a positive monthly cash flow. They pay for themselves. They increase in value. They save you thousands in taxes. They multiply!

Case Study:

While waiting tables, Josh acquired 12 houses in a period of three years. He purchased each property for $100,000 using a 30-year mortgage and no cash out of his pocket. His annual mortgage payments for his properties totaled $86,400. After all expenses, these properties cash flowed $30,000 per year. He also took out a $20,000 equity line of credit on each property totaling $240,000. He used these funds as a down payment along with a 30-year mortgage costing $300,000 annually to purchase a large four-million-dollar apartment complex. After all expenses, the complex cash flowed $100,000 annually.

Needless to say, with a passive income of $130,000 per year, Josh stopped waiting tables. He also stopped buying more real estate. In 30 years, when all his mortgages are paid off, Josh will own $5.2 million of real estate free and clear. Without his mortgage payments, Josh's cash flow will increase to $516,000 per year, and this is assuming Josh's rents never increase and his properties realize zero appreciation. In a more realistic world, his rents will have increased by an average annual rate of between three and ten percent and his properties will have appreciated at about the same rate. Imagine what the power of time and compounding will do for Josh's portfolio!

Case Study:

Nicole tied up a fourplex for $205,000 with a closing date for August 5 and the seller paying up to $5,000 of her closing costs and bank fees. At closing, instead of having to bring a check to the table, Nicole was given a check made payable to her for $6,000. She was able to do this through 100 percent financing, seller-paid concessions, and prorated tenant rents and deposits. Because she closed on the fifth of the month and the property rents were due in advance on the first, a proration of the rents collected from the 5th to the end of the month were rightfully hers. Tenant deposits are always transferred with the property to the new owner's care.

Paul Pratt

Our team's diverse backgrounds and investing experiences include a high school teacher, a college drop-out, an MBA graduate, a waiter, a secretary, a real estate agent, a banker and a stay-at-home mom. Despite our diverse backgrounds, we shared a common, life-changing event; we all made the decision to truly change our lives. Although our starting points couldn't have been any more different, we each discovered that our journey toward financial freedom began with real estate.

Most real estate investing "gurus" offer a "one-size-fits-all" approach, providing generic ideas and uncertain results because their philosophies fail to consider individual experience and circumstances. Our personalized approach, the understanding that each of us has a very unique background and set of circumstances, is what has made MyreiTeam’s system so effective.

After years of learning "the hard way", we are now living our dreams. The high school teacher now has the ability to spend more time with his most important students, his own kids. The college drop-out is retired and enjoying exotic fishing and hunting trips. The waiter is now waited upon, vacationing and skiing in the world's greatest resort towns. The MBA grad and banker own their own real estate investing firm and the secretary now manages her own employees who are devoted to her real estate empire. The stay-at-home mom has moved her family into a luxurious 8,000-square-foot scenic mansion.

All of the wealth and success we have been enjoying has been better than we could have dreamed. But even more satisfying and phenomenal was the rate at which the Personalized Investor Matrix™ was creating wealth for our friends and family who were using it to get started in real estate. Now we want to share this revolutionary approach with you. Our powerful, personalized investing system is now at your fingertips.

MYreiTEAM is exactly what it says, your team! We are here to provide you with all the help and support you need to succeed. If you have investment questions, need some support or motivation, or if you just made an exciting deal and just want to share your experience with somebody, post your question or experience on the My REI Community board. One of our team members will quickly respond to your question with expert advice. The point is we are committed to your investment success and are excited for the opportunities that lie before you. Welcome to MYreiTEAM!