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| How to Double Your Money in Less Than 3.5 Years |
Scenario: 1) The investor has $200,000 to invest; 2) This $200,000 represents part of a $1,000,000 deal; 3) the investor gets 2 points, 12% interest and 7.5% of net profit.
Assume: two (2) deals per year with an average of 6 months time frame, and $200,000 in profits.
Assume: 50% Equity in Home |
| | Mortgage Balance | HELOC Amount | Amount Invested | Time (Mo) | 2 Points | 12% Interest | 7.5%
Net Profit | Total Return | Money Returned |
| After | $200,000 | $200,000 | $200,000 | 6 | $4,000 | $12,000 | $15,000 | $31,000 | $231,000 |
| 1 Transaction | $169,000 | $231,000 | $231,000 | 6 | $4,620 | $13,860 | $15,000 | $33,480 | $264,480 |
| 2 Transaction | $135,520 | $264,480 | $264,480 | 6 | $5,290 | $15,869 | $15,000 | $36,158 | $300,638 |
| 3 Transaction | $99,362 | $300,638 | $300,638 | 6 | $6,013 | $18,038 | $15,000 | $39,051 | $339,689 |
| 4 Transaction | $60,311 | $339,689 | $339,689 | 6 | $6,794 | $20,381 | $15,000 | $42,175 | $381,865 |
| 5 Transaction | $18,135 | $381,865 | $381,865 | 6 | $7,637 | $22,912 | $15,000 | $45,549 | $427,414 |
| 6 Transaction | PAID OFF | $427,414 | $427,414 | 6 | $8,548 | $25,645 | $15,000 | $49,193 | $476,607 |
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