We are not social security doom sayers. The problem is, it isn’t enough. The problem with stocks and bonds is the market volatility and annual cash returns under 4%.

Consider two real estate investment examples:

Example A: A $360,000 4 unit; 6.5% annual cash return; $100,000 down payment; $260,000 loan at 5.5% will amortize in 17 years 3 months based on a 6.5% annual return.

If rents increase 2.5% annually for 5 years there is an opportunity to prepay approximately$250 each month and after 10 years prepay approximately $512.50 per month. If the value appreciates at the rate of 2.5% annually the property will be worth approximately $450,000 after 10 years.

Example B: $100,000 purchase, $25,000 down payment; 5.5% mortgage, $1,000 monthly prepayment, 6% annual return. The property will be free and clear in 57 months.

Recently Advantage Realty, Inc and I have expanded horizons and are involved in the investment of retirement accounts in rental real estate and promoting the use of limited liability corporations as a real estate investment vehicle for joint ventures.

We think there are many retirement investment opportunities. We have a proven track record of creative thinking. If you are interested in learning more about using investment real estate to supplement your retirement income call Joan Eslinger at 815-791-5875 and arrange a free consultation with Joan and Jack Hynds.