Reality or Fantasy?

[Adam Shpall]

Hi everyone- I am a newbie looking into real estate investing.

Over my lunch break, I stumbled into Barnes & Noble and started reading a book about investing in duplexes, triplexes and quads by Larry Loftis.

In his book, he talks about pyramiding on your investments. He lays out a wealth plan that I thought sounded a bit ‘optimistic’.

His plan showed that after 15 years, you could have $27 million in equity if you started with only a $20k investment. I believe the strategy is to purchase and refinance every two years or so to pull out the equity to purchase other properties.

His assumptions are:

• 10% down payments to purchase duplexes, triplexes and quads, which increase to 20% down payments after several years to purchase apartment buildings.
• 10% immediate appreciation based on repairing the properties
• 7% annual appreciation

While I didn’t comb through the math, I assume it works on paper.

[u]Experienced investors-

Is this realistic in the real world?

What are the potential dangers to this strategy?

Thanks for the guidance!

-Adam