The Key to Your Own Home

For Investors


Investing in real estate can bring you the highest return of any investment vehicle out there, higher than investing in the stock market. Many people, sadly, have the misconception that the stock market is the best investment vehicle, having a historical annual 9% return on money invested. They point out that the historical return on residential real estate is only 5%, or just slightly above the inflation rate. That is the historical appreciation of real estate from year to year, but without taking into account the power of leveraging, it is highly misleading. Most people purchase real estate with a loan(leverage) which will make the annual investment return in real estate beat almost any investment vehicle available in the market place. Please look at the very conservative example below:

 

Purchase of $70,300 property and your initial investment of $11,248(20% downpayment) & $44,992 in mortgage loan. We are assuming a 5% annual appreciation in both market value & rent. 30 yr mortgage at 7.43%(historical rate of 30 yr mortgage).

 

Tracking Your Return on Investment Over Time (30-Year Mortgage)

Year

Start of Year Market Value

Annual Price Appreciation

Year End Appreciated Market Value

Annual Principal Debt Pay Down

Year End Accumulated Equity

Annual Cash Flow

Annual Return on Investment

1

$70,300

$3,515

$73,816

$420

$29,244

$300

37.7%

2

$73,816

$3,691

$77,509

$453

$33,390

$503

41.3%

3

$77,509

$3,875

$81,387

$488

$37,756

$715

45.1%

4

$81,387

$4,069

$85,461

$525

$42,355

$938

49.2%

5

$85,461

$4,273

$89,739

$565

$47,198

$1,173

53.4%

6

$89,739

$4,487

$94,232

$609

$52,300

$1,419

57.9%

7

$94,232

$4,712

$98,950

$656

$57,674

$1,677

62.6%

8

$98,950

$4,948

$103,906

$706

$63,336

$1,949

67.6%

9

$103,906

$5,195

$109,110

$760

$69,301

$2,233

72.8%

10

$109,110

$5,455

$114,575

$819

$75,585

$2,533

78.3%

11

$114,575

$5,729

$120,315

$882

$82,207

$2,847

84.1%

12

$120,315

$6,016

$126,343

$950

$89,184

$3,176

90.2%

13

$126,343

$6,317

$132,673

$1,023

$96,537

$3,523

96.6%

14

$132,673

$6,634

$139,321

$1,101

$104,286

$3,886

103.3%

15

$139,321

$6,966

$146,302

$1,186

$112,453

$4,268

110.4%

16

$146,302

$7,315

$153,633

$1,277

$121,061

$4,669

117.9%

17

$153,633

$7,682

$161,332

$1,375

$130,135

$5,090

125.8%

18

$161,332

$8,067

$169,416

$1,481

$139,701

$5,532

134.1%

19

$169,416

$8,471

$177,906

$1,595

$149,786

$5,996

142.8%

20

$177,906

$8,895

$186,821

$1,718

$160,419

$6,483

152.0%

 *This is by no means a promise or guarantee of earnings you will make if you purchase property through us. The data used in this example is highly reflective of historical market data but not future looking.

 

As you can see, the return from investing in real estate far outperform any mutual funds or stock market in the world. So if this is the case, why is it that not more people are doing it? Why is it some have done it and quit? Why do you hear so many nightmare stories of real estate investing.

 

For a very simple reason, Real Estate investing is very 'high maintenance'. To keep the property value appreciating at or above market rate, to keep getting market rate rent or more, you have to maintain the property. That is where GetACrib comes in. We will manage your investments, taking away the biggest obstacle in successful real estate investing and the biggest hurdle in taking that first step into this highly worthy venture.

 

You can & should invest in real estate anywhere, especially in Central Texas. Why Central Texas? This is because the fundamentals in Central Texas is very strong. 1) Close to 100% of the household can afford to purchase a home & 2) Prices of properties are low such that you will get substantial positive cash flow. More importantly, Central Texas is growing & will continue to grow.

 

Why Rex Sjariffudin

I am very knowledgeable in real estate. I’m an investor myself. I’ve had the experience from investing in real estate ranging from residential properties, to duplexes to fourplexes. I know the pulse of the Central Texas market.

 

I am a person of integrity and take the fiduciary responsibility of an agent very seriously. I put the interest of my clients ahead of my own interest. Bottom line, I am not out to just sell properties. I will let a client know if a particular property is not a great deal and that it should be passed up. Note: Currently, the 4plex market in Austin is overpriced. Too many out of state investors has bid up the price without regard to the fundamentals. Disclosure: I sold my 4plexes to out of state investors this past year.