Your Game Plan may occur faster or slower depending on many variables including your income, debts, credit scores, assets and the market. Strongbrook REIC’s commitment is to work with you over the years regardless of how long your plan takes.
The options outlined in this Game Plan report work together to create an overall outcome. As we remove individual options and review them in isolation, some of the financial data may not accurately reflect the overall Game Plan illustration. Understand that some of your assets that come from different sources may be working together with assets from other sources to create the overall illustration.
Strongbrook REIC's proprietary Game Plan simulator includes a number of variables that you may alter yourself if you go into the “Advanced” mode. We encourage you to become familiar with all of the Advanced variables, and to adjust them according to your risk tolerances and personal views to create the most accurate illustration. The adjustable default values have been selected based on our overall experience and knowledge over hundreds of real estate transactions.
The following are assumptions used in your Game Plan.
Current 401K: 50% of the value of the current 401k can be borrowed to a maximum of $50,000. • The amount borrowed is paid back over 60 months with an interest rate of 5.25%.Credit: Maximum leveraged properties using personal credit is 5 • Maximum leveraged properties using other people’s credit is 100
Inflation: Starting at 2.00% until 2011 , ending at 3.00% after 2021
Insurance: A maximum of 80% is taken as a loan against the cash value of the insurance. • The loaned amount is paid back at a rate of 5.25%.
Investment Properties: Money borrowed against investments is 70% of the value minus the mortgage. • The balance of money borrowed against investments is paid off after 10 years.
Investment Rates: An investment rate of 8.0% is used for comparing funds taken from Retirement Assets. • A savings rate of 2.0% is used for comparing funds taken from Non-Retirement Assets. • A savings rate of 2.0% is used for cash.
IRA, Old 401K and Annuities: If funds are withdrawn a penalty of 10% is paid. • If funds are withdrawn taxes are paid as though it was income. • If funds are self directed all properties are purchased as paid off.
Land: Land is sold at a discount of 25% if the proceeds are greater than 20% of the value.
Savings: Monthly investments occur during the first 10 years.
Mortgage Rates: Starting at 5.25% until 2011 , ending at 7.00% after 2021
Partners: Partnerships are based on 35% ownership between both parties. • The partner invests $50,000 to fund the partnership. • The partner provides the credit to purchase 5 properties. • All proceeds from cash flow and capital gains is reinvested for the first 10 years. • After 10 years cash flow is dispersed equally to the partners. • Net worth is calculated as 35% of the total net worth of the partnership.
Person: All properties are leveraged for the first 10 years if credit is available, otherwise they are paid off. • All cash generated from cash flow and capital gains is reinvested for the first 10 years.
Primary Residence: Money borrowed against a residence is 80% of the value minus the mortgage. • The balance of money borrowed against a residence is paid off after 10 years. • Poor Credit requires a minimum of twenty-four (24) months to move into a new home. • If moving, a minimum of 3 moves is done every 18 months.
Roth: If funds are withdrawn a penalty of 10% is paid. • If funds are self directed all properties are purchased as paid off.
Sales Career Opportunity: See the current Strongbrook Compensation Plan for details on the commission and bonus calculations. • Team members will sell memberships at a rate of 1.5 per year for 12 months • Team members will have 2.7 team members workin with them. • Experience level adjusts the decay of the assumed sales rate of the team members from 12% (Excellent) to 15% (New).
Self-Managed: Starting at 10 properties until 2021 , ending at 0 properties after 2031 Reserve: $4,000 is reserved for each property. Adjusted by inflation. • Adjustments: Starting at 100% of reserve until 5 homes, ending at 50% of reserveafter 25 homes
Taxes: Taxable amount is , based on an income of using standard deductions. • All taxable income is added to the taxable amount and the increase in taxes are calculate. • Federal taxes are filed as Jointly. • State taxes are filed for Utah. • Tax calculations are adjusted for inflation. • Any tax returns caused by a loss are reinvested. • Federal Tax code 1031 is used on all capital gains from the sale of properties and the associated taxes are deferred until the properties are disposed