How to create wealth in 5-6 years.

Creating wealth is not has difficult or complicated has perceived. all it takes is a few easy steps.

Difficulty: Easy

Instructions

Things You'll Need:

• calculator, A Plan, Patience

1. Work for a company that offers a 401K plan. Maximize your contributions or at least up to what the company will match.

2. After 1 year borrow from your 401K plan to purchase a house. If necessary wait 2 years.

3. After 2 years you will be able to borrow from the equity of your house. use this new loan to buy another house and convert it into a rental. The rental will help reduce your taxes.

4. wait 2 more years and borrow again from your rental to purchase yet another rental. Remember rentals are depreciated over a period of time usually over 27.5 years.

Tips & Warnings

• After 5-6 years you will have 3 properties gaining equity plus your 401K plan growing. You will ultimately be on your way to creating wealth.
• 1) Make sure that the rent on the rentals will cover the mortgage payment.
• 2)When you do take out a loan, ensure that enough is taken out to cover at least 2 months payments(to cover vacancies).
• 3) Always consult your tax advisor, they can be a great asset in your venture to creating wealth.
• 1) Be thorough in your research when purchasing properties.
• 2) Pay a lawyer to write up your first rental agreement from there you will have an idea how to do it.

[800fico]

on 10/21/2009 This is so old school. Industrial revolution way of thinking. The only way to create wealth is to break free on conventional ideas and create your own opportunities like i have done. www.fortunesocial.com