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"Focusing on QUALITY not quantity of Real Estate Investments"
Summer 2018
In This Issue
Improving Operations and Cashflow
The Tax Benefits of Commercial Income Properties
Our Most Recent Deals
"Energy and persistence conquer all things."
-- Benjamin Franklin, Inventor


What have I been doing since the last time you heard from me?  Running a 230 site RV park in Arizona with the help of our seven wonderful staff.

I love RV parks, just as I had anticipated in my email to you just before myself and my partners closed on the property in December of 2014.  

rv park

The investment has been very profitable as well!  I had projected a $72,500 net operating income for our first year of operations, increasing slightly each year, but instead our professionally prepared financials have shown an NOI close to $120,000 each year during the past three years!


When you are a partner in a large income property investment, there are great tax benefits.  On our current investment, my partners have received a 16% cash disbursement the last two years, but less than half of that has been taxable.  This is because of the legal deductions of depreciation and amortization.  

And because of the way our accountant structured the 2015 return, they have owed no taxes in 2016 and 2017.  I explained this in an earlier newsletter as a benefit of large income properties and it has held true.



In 2014, I presented two deals to my subscriber list.  Many of you were considering investing at that time.  As mentioned already, myself, my family, and two investors from Canada closed on the rv park in December of 2014.  In January of 2017, we were able to refinance with a regional bank with the property appraising at $1,225,000, a full $515,000 more than our purchase price of $710,000 two years earlier.  The cash flow has been very good.  I was able to distribute a 16% cash return on investment to my partners for 2016 and will be sending a similar cash ROI for 2017.  I did not send out a disbursement for 2015, but the tax benefits of a large income property such as this has resulted in us paying little or no taxes in 2016 and 2017.

You may remember that I also presented you a 21 unit apartment building near downtown Detroit as a wholesale deal in September of 2014.  The building was being sold by a court-ordered receiver (bankruptcy proceedings) and I had the three-story apartment complex with balconies under contract for $277,416.00 ($13,210/unit).  I was asking for a $15,000 wholesale fee.

Detroit building

How did this property investment do?  The resulting purchase is recorded in property records as $280,000 on 1/13/2015.  The buyer was then able to obtain a new mortgage for $320,000, $40,000 more than their purchase price, with First Independence Bank just four months later on 5/5/2015.  And then they successfully sold the property on 3/23/2017 for $1,100,000.  You can see this sale in the...