Why You Should Appreciate Appreciation
A Look at the Real ‘Eighth Wonder of the World’
One of the most attractive things about income property is that it’s an incredibly
$20,000 in appreciation to your base portfolio value of $400,000 and your portfolio will be worth $420,000 just 12 months after your initial investment. In year two, that larger number will be compounded by 5%, meaning you’ll earn an extra $1,000 in appreciation, bringing the value of your portfolio up to $441,000 by the end of the year. Then, that $441,000 will appreciate — continuing the cycle until, just five years from the time of your initial investment, your principal balance surpasses half a million dollars. That’s an
stopped making payments on. Their interest rate compounded year after year, and now, more than a decade later, they owe roughly three times the amount that they originally borrowed thanks to a combination of irresponsibility and appreciation — which can be just as powerful an enemy as a friend. To learn more about how you can ensure appreciation works for you, visit JasonHartman. com to secure an investment counselor and explore our hundreds of investment resources.
multidimensional asset class. There are many ways investors can earn returns, but hovering over them all is appreciation, a fool-proof — though ironically underappreciated — way to pad your portfolio. Albert Einstein called compound interest “The Eighth Wonder of the World,” and appreciation works just like compound interest: for creditors, and against debtors. It’s also constantly accruing, so even passive investors can reap its benefits. Imagine, for example, that you’ve purchased four $100,000 properties from JasonHartman. com with the help if your investment counselor, who notified you immediately when those deals became available. That leaves you with a $400,000 portfolio, and if all four properties appreciate at the realistic annual rate of 5%, you will earn an additional $20,000 in appreciation during that first year. Add that
impressive return, all without taking into account cash flow, tax benefits, inflation- induced debt destruction, or whether you’ve leveraged your portfolio to earn higher returns. Of course, appreciation can also work against you. Jason, for example, once purchased a mortgage note from a lender that, before long, the borrowers
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Are you ready to build your fortune? It’s time you invested in real estate. Visit JasonHartman.com or call 1-800-HARTMAN today to schedule a free consultation, shop properties, sign up for events, and explore thousands of investor-specific resources. Income property is the most historically proven asset class in the world.
service, it’s easily the most civilized, hassle-free way to travel. I plan to embark on many more cruises in the future, starting with the seven-night New England and Canada cruise that my company has planned for our upcoming Venture Alliance Mastermind excursion.
If you haven’t yet signed up to join me aboard, consider this your personal invitation. The ship will set sail from Brooklyn, New York, on Oct. 12 and stop in Rhode Island, Maine, Nova Scotia, Massachusetts, and
New Brunswick before returning to New York on Oct. 19. Onboard, we’ll treat you to two exclusive Mastermind sessions, a Bon Voyage Party, a Private Luncheon, Nightly Networking, and much more, in addition to discounted shore excursions and all of the amenities the ship itself has to offer. Visit JasonHartman.com today to reserve your spot, and join me in raising a glass to the best way to see the world. –Jason Hartman
www.JasonHartman.com
1-800-HARTMAN
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