Another suggestion…long range…and long - Posted by soapymac
Posted by soapymac on June 19, 2000 at 20:43:29:
Given your goal is to have ten multis in 11 years, here is an idea for you. Whether or not you can use it depends on whether your income is the only one in the house, or whether you have both yours and your wife’s income. This would DEFINITELY REQUIRE that you check with your financial planner. If you have a 401(k), or your income is beyond the limits of what I’m suggesting, then never mind. Here is the idea:
Check with one of the advertisers at the top of the page to see if you can place money into a self-directed IRA (regular or Roth, depending on the advice you get.) Then use THAT MONEY to invest in one of your multi’s in 8 - 10 years. Look at these numbers for the potential, and you’ll see why it bears checking out.
An example: use a regular IRA and put $2,000 in it for 9 years at 8%, compounded monthly. If I did this right, that is a total of $26,238.00 available to you after nine years (double this if your wife is working and she puts in the same amount, too.)
Rounding everything off, you have $52,500 in your two IRA’s available for one of your last multi purchases. Keep that multi rented for 25 years…then sell this multi, put the monies back into your IRA, and retire.
All of your growth is TAX DEFERRED and NOT subject to capital gains rules as we know them. The taxes WOULD have to be paid when you withdraw the money…the same way a “standard” IRA would be taxed.
How much would you have. I don’t know…but here is an instance where you can grow your capital.
Worth a check out, anyway.