Powered by Bagorio I-Technologies
LEARN MORE.

ZERO CASH INVESTMENTS

\ Joint Venture \ Zero Cash Investments

If you have substantial amount of build up equity on your personal residence and it is not making any money for you. By utilizing the equity that you have as a secured Line Of Credit (HELOC), you can invest in Real Estate without using any of your own money.

This can significantly increase your Return-on-investment (ROI) because instead of using a large sum of savings (for example, $45,000) as a down payment, you would only be responsible for paying the interest on a $45,000 HELOC. At today's incredibly low interest rates, your payments over 5 years would be only $7,310. But to be conservative, you could double today's interest rate and still only pay $14,620 over 5 years.

Let's examine how this could affect your ROI:

Initial Investment
$179,900
Down Payment (HELOC)
$ 45,000

HELOC payments made by Investor $188/month (assuming average interest rate of 5% over 5 years)

Estimated Equity if sold in 2014
$101,000
Plus 5 years’ Cash flow
$ 5,000
Minus Investor’s HELOC Repaid
$ 45,000
Net Profit
$ 61,000

Investor’s share of Profit (50%)
$ 30,500
Less HELOC interest
$ 11,250
Net Profit for Investor
$ 19,250

If the Down payment had been $45,000 cash, the ROI would have been a healthy 68% over 5 years (or 14% annually).

However, using a HELOC, your ROI (Based on $11,250 cash invested) would be 171% over 5 years (or 34% annually)

There are several advantages to using borrowed down payments:

1) By keeping your cash in your pocket, you could have more than doubled your returns.

2) Interest payments made on investments are tax-deductible

3) Your cash can be used for other purposes (such as paying down your personal mortgage, investing in other products that do not allow borrowing, or taking a well-deserved vacation!) We would be happy to discuss your unique situation to help design an investment that is right for you. Please contact us for more information.

Please contact us with any questions, or to setup a time to talk about the ownership and liability structure.

Disclaimer: This website is intended for information purposes only. This is not an offering of securities. Investments are available via offering memorandum only.

 :. Portfolio
About Us
Why Real Estate
Joint Venture
Investment Offerings
Track Record
Contact Us
Investor Login

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 © 2005 - 2008 Bagorio Corporation. All rights reserved.