Citation :
[–]Caulkpunch 1126 points 5 heures de ça
Buy a cash business like a nail salon, paying the majority of the true purchase price in cash to the seller with a token amount on paper. "Sales" increase steadily over a year, you sock away all the clean money thrown off by the salon, maybe 4-5K/mo. After that year, put the 50-60K as a down payment for a really shitty investment home or "flip". Pay for all renovations in cash. Sell house for a clean profit, rinse and repeat.
Once you get tired of that, buy yourself a small commercial building. A shitty little neighborhood shopping center with vacancy problems. Hire patsies to open more cash businesses. A dry cleaner. A tanning salon. A boutique clothing store. Each of these operations now serve two purposes: cleaning a little cash each month which pays for your patsies and a little taste for you, but more importantly, they pay their above-market rent on time each month.
Now you've operated this for a year and have built some excellent financials on the shopping center, so you sell it as a leased investment on the commercial real estate market. What you purchased for $1m when it was throwing off no rental income you now sell for $5m as investors pare paying you for value of future cash flows. Now 1031 tax defer your profits into a like kind investment, which means your $4m profit is now down payment on a $15m office building throwing off $750K/year in crystal clean income.
The real trick is don't take that $750K/year though (taxable as income). Pay your mortgage down early, and after 5 years you refi and take your $5m out as capital gains to minimize tax exposure. Rinse, repeat as needed.
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