Hi, I'm Chief Denney and welcome back to our GO Zone series. In the last video I gave you some amazing ideas and concepts about the GO Zone and told you how amazing the opporutnity is for all of us real estate investors, and how important it is for us to invest in the GO Zone.
I know as a real estate investor, probably one of the first things you're thinking about is cash flow. Can I make cash flow? In the Go zone there's amazing cash flow opportunity, because there's such demand for affordable housing. Imagine buying a brand new home that will generate $200, 300 per month positive cash flow. Then couple that with the GO zone tax write off.
I know I talked about the GO zone tax writeoff but let me give you some examples. Let's just say you're buying a brand new home for $170,000 - traditionally that home would generate somewhere around a $3000 or $4000 writeoff, annually. In the GO Zone that writeoff is $70,000. How many of you can use an extra $70,000? Think about that, a $70,000 write off would allow you to go back and recapture a lot of the taxes you've paid. And in times like right now, to have that kind of writeoff where you can put 20, 30, 40 thousand dollars cold hard cash back in your pocket. I can't think of a better opportunity.
But beyond the cash flow, beyond the tax writeoff, what we deal with is foreclosures, REO's and builder bailouts. In the GO Zone we have brand new homes where we bail out developers, you can turn around and buy these homes significantly below market. $20,0000, $30,000 below appraised value.
So you've got cash flow, you've got writeoff and now you walk into a quick $20,000 or $40,000 in equity - and this is all on a brand new home, a home that comes with a warranty. You don't have to worry about it being a fixer upper, or any of that stuff.
Lastly, the GO Zone is a booming market. Of all the markets I look at in the country, this is probably the single greatest market for the potential for appreciation. Not based on what I see, but based on what the big boys are doing, as I mentioned earlier. This is where the casino operators and huge developers are spending hundreds of millions of dollars in the marketplace, billions of dollars, and all we have to do is ride their coattails.
I haven't been able to find another place in the country where I can get cash flow on a brand new home with a huge $70,000 writeoff, $20, 30, 40,000 below market and a market that has great potential for appreciation.
I thank you for taking the time to watch this video, I look forward to talking with you on the next video.
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