Athen Apaquette

Tom and Betty bought a triplex in Torrance 3 years ago for $790,000.

They put 30% down and got a 30-year fixed rate of 5.125% on a loan amount of $553,000. When they received my postcard about freeing-up cash, they found out that their property is now worth $1,000,000 and they can get cash out of 75% of the value of the property! That is, with a loan amount of $750,000 they are getting almost all their downpayment back. The icing on the cake is that their rate went down to 4.5%.

While it’s true that their monthly payment went up $800 per month, they now have cash to buy more property or invest in notes.

My suggestion is that they buy more property in a different area that gives them a 10% cash-on-cash return, and keep doing this over and over through the years.

YEAH now that’s what I call unlocking the power of leverage!