Simon Snelder

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I will start by sharing my story about my first investment. It was back in 2010 and I decided that I wanted to buy a property to live in. At that time I was still living in the Netherlands and the housing market was going down. The financial crisis had hit the world including my hometown. 

But I wanted to live out, I was staying at my parent’s house and I went to look around for properties, did not know what I wanted yet. I even saw a boathouse. After looking at different units, I realized that I wanted something with a nice view. I found a nice 1 bedroom apartment with a forest view and with large windows everywhere. I closed the deal quickly and bought it. 

It was 100% financed, at that time it was still possible and also financed the acquisition cost, which was an additional 6%. I paid nothing for the apartment. I then lived in it for some years and could get back half of the interest I paid through tax benefits as a homeowner. 

After some years, I decided to move to Dubai in 2013, and instead of selling my apartment, it was rented out. Immediately I got a good rental yield and since then I have been collecting good rental income. Also, the apartment has appreciated well, so it’s worth more money. 

Not bad for an investment I did not pay for. How can you also grow your money in real estate in a similar way? Let’s look at the picture below and I hope this immediately makes sense to you. 

Based on the picture above we see that two investors have $100,000. 

Investor A decides to buy 1 property worth $100,000. After 10 years he sells his property, the property prices have doubled in that time and his profit is $100,000 equal to a 100% return. 

Investor B decides to buy 5 properties worth $100,000 each, next to investor A, the only difference is that through lending from a bank he can get 80% financed for each property. This means that his down-payment is $20,000 for each property. He rents out the property, which pays for the mortgage. He also decides to sell it after 10 years, the market prices have doubled by then and his profit is $500,000 equal to a 500% return. 
– Both investors invested in real estate, and even bought the same property, in the same country, location, and building. 
– Both investors invested at the same time.
– Both investors sold it at the same time. 
– Both investors started with the same amount of money. 
But investor B has made $400,000 more profit which is equal to 400% more return on his investment after 10 years than investor A. 

Which investor do you want to be?

To understand how you can accelerate your growth in real estate book a free consultation with me through this link:

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