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Retirement Planning Retire Wealthy? Math Problem
You should know nine out of ten people of wealth earn their fortunes in real estate. Thus, your retirement nest egg can follow this same format. However, you will need to update the numbers for today’s RE market.
I have changed the particulars of this story to ensure my tax client’s privacy. However, this story can be retold in any urban city where property has deteriorated, yet the area is still viable for the surrounding areas.
The neighbors were calling the police every weekend on an apartment complex that was supposed to be vacant. The previous owner died, and the family did not keep the property up. The city slapped several fines on the property, including a tax levy for unpaid property taxes.
The small city is in the shadows of one of the major cities in the United States, meaning it is around 25 miles outside of a major city. The main street was boarded up with a few stores still open. The broken-down apartment complex was on the main street at the very end of the street.
The client Mr. X went to the counties tax records to see who owned the property. That is when he found out there was over $5,000 in unpaid property taxes.
Mr. X contacted the property owners on record and requested to purchase the property for a low cost, amortized over 30 years, plus…
