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How to Make a Million Dollars

6 Pages or Less!!!

By Maniga M. Otep
Copyright © 2007
1. Real Estate Doubles Every 7 Years: The rule of 72

2. Three Things you Need to buy a house

3. Buying a House with No Money

4. If you Can Buy one You can Buy Five!! : Why Buy
Multiple Properties

5. If you Can Buy one You Can Buy Five!! : How to Buy
Multiple Properties

These are important organizations to know
Tampa City & County Home Grant & Naca
Step 1:
For Both Tampa and Hillsborough You Must Register for the
Certificate Class 813-251-5402:
Good for two years!! Downpayment Assistance
Classes are Tuesdays and Thursdays 6 to 8pm.
Step 2:
Downpayment assistance (813) 274-7954
Step 3:
Hillsborough County 813-274-6600

Meets twice a month and provides the best interest rates and
homeownership classes around & Zero Down with No Closing
“Isn't it about time you have something to lose?”
Real Estate Doubles every 7 years

Government Statistics
U.S.A. Housing Average
Appreciation Trends Appreciation per
1980 to 2005 = 284% 11.36%
2000 to 2005 = 57.68% 11.536%
2004 to 2005 = 12.95% 12.95%

The rule of 72 is commonly used in Finance to estimate when an

investment will double. The rule basically says take the number 72 and
divide it by the amount of annual compound interest and you get the
number of years it takes for the investment to double. ( 72/interest = X

 If you buy a savings bond at 4% annual interest, it will Double in 18

years!! ( 72 / 4 = 18 years )
 If you have a savings account at 2% interest it will Double in 36
 If you have a checking account at 1% interest, it will Double in 72

Simple enough; invest in something that grows annually by

10% and your investment will double every 7 years!! Now, guess
what has been growing at over 10% for the past 25 or 30 years?

You got it – Real Estate!!

The official government numbers are in the table above!! We know
what to buy –it‘s just how to buy it! Let‘s Get Started!!!
Three Things You Need

You need any ONE of these three

1. Credit
2. Job
3. Money
For example: if you have bad credit, you can compensate with having
either an excellent job or by having excellent money.

Three Scenarios
1. Excellent Credit (650+)
If you have Excellent Credit you do not need a job or even money!
Banks will readily make cash available to you through mortgage
programs; programs, such as No Document 100% Loans. With this type
of loan you do not have to show anything in terms of employment and
you do not have to bring any downpayments to the table.

2. Excellent Job
If you have an Excellent Job, like say military, fire, any government job
that shows a guaranteed income, your credit and your money can also be

3. Excellent Money
If you have Excellent Money, like say Donald Trump, then you don‘t
need credit or a job. Does Donald have good credit? -Probably not… just
exactly how many times has he filed bankruptcy ?—With Excellent
Money, you can simply buy everyting upfront with cash, and wait your 7
Note: Having the sum of all three in fair or good condition will also work for you.

Never Tell Yourself No! As long as you understand that Banks are
crazy… just tell them exactly what you need and You might be surprised
what they offer!
How to Buy a Home with No Money

Seller‟s Closing Cost Contribution

Closing costs are mostly taxes and the monies you pay to the government
for recording the sale in their system. Most banks will allow the seller to
contribute up to 3% on average to your closing costs. Closing costs co-
incidentally run about 3% of the purchase price. In the sales-contract be
certain that it states plainly that the ―seller will contribute 3% of sales-
price to buyer‘s closing costs.‖
Extra Money – for „Repairs‟ !!
In addition to the 3% towards closing, it is a well kept secret that, most
banks will allow an additional 2% of the purchase price to be used for
‗repairs‘. Be certain to clearly stipulate in the sales-contract that ―Seller
will contribute 2% to buyer for minor repairs.‖ The banks generally
allow you to leave the closing-table with that 2% in cash!!
Please know that anything greater than 2% and the bank wants to hold it
in escrow, in other words they keep the money, and force you to justify
with reciepts that the money is actually used for repairs!

If you buy a home for $200k, your closing costs will be approximately
$6,000. Seller‘s contribution to closing will be $6,000 and the
contribution to ‗repairs‘ $4,000. Closing costs are 3% and your total
seller contribution is 5%. You walk away with 2% or $4,000 CASH!!

implies 100% financing
If not 2%, ask the bank what their escrow holdback limit is and put a little less
than that number in the contract- for „repairs‟
If you Can Buy one You can Buy Five!!

Why Buy Multiple Properties: Never Buy Just One

Never buy just one property. The reason is that one house cannot pay for
itself. This is what happened to me:

I bought my first townhome at $70,000 then within a year and a

half the value jumped. My house was now worth $120,000!! A jump of
$50,000!! That is a good thing right? Well, I was besides myself, I
didn‘t know what to do. I thought about selling and cashing out with my
$50,000 But here‘s the problem –if I sell where am I going to live? All
the property in the decent neighborhoods were going to cost an arm and a
leg to purchase. So I had no choice but to stay put.
You see if I had bought at least one other property then I could
have sold it and capitalized off the higher home values. After selling
property #2 I could have used it to pay down the mortgage on property
#1; essentially leaving myself with a $20,000 mortgage.
Just think. If I had three properties, after selling properties 2 & 3,
I would be living rent/mortgage free for the rest of my life and walked
away with some cash in hand- All within a year and a half!!
Never Buy Just one ;)

Question #1: How long does it take someone earning a salary of $40,000
a year to earn one million dollars?

Question #2: How long would it take a person/family saving $1,500

every month to have one million dollars

Answer #1: 25 years.

Answer #2: 55 years
If you Can Buy one You can Buy Five!!

How to Buy Multiple Properties

This is where it gets interesting. It usually takes the banking
system anywhere from 45 to 60 days to update your credit rating and
situation –bear that in mind, while I explain the significance.
Banks generally compete with each other for your business.
Whether you are buying a car or home, they all want to lend you
money…because that‘s how they get paid. People always advise you to
shop around and find the best deal. So, what happens sometimes is that
you fill out a mortgage application with Bank #1 and also with Bank #2,
waiting to see who gives you the best rates. When Banks give their
approval and rates they are usually good for 90 days –giving you enough
time to find a house.
Here‘s the good part there is no limit on how many applications
you can submit –and if you have 2 approvals you can buy 2 houses. The
rates might be a little different on each loan, but don‘t get distracted by
this ‗Red Hering‘- keep an image of the bigger picture ($1 million). Take
all the loans and get yourself 2, 3, or 5 houses!! (you can get even more
if you desire)
*** The key here is to remember the 45 to 60 day window!! Because
once say house #1 hits your credit…you might no longer be within the
bank‘s guidelines to make additional purchases. So what you must do, to
be safe, is schedule the Closing Date of all your purchases to be within
30 Days of each other, this is not hard to do. In the contract you set the
Closing Dates!!!

-- When Banks compete you win! --


This is the easiest part. Since you knew the history of real
estate in America, then you knew what was going to happen. So,

Guess What??

Your property has doubled!! If you bought a million dollars worth

of property (about 4 houses at todays prices!!), it is now worth two
million dollars. You will only owe the bank the one million that
you borrowed initially!! Congratulations on your first million!!
Now What?

Just Sell Everything and Run For the Hills!!

No just kidding.

You millionaires and your problems!!
Be sure to look up the next book in the series
-- I am a Millionaire: Now What? --
by that True Nega
Maniga M. Otep

- Based on over 25 years of Solid U.S. History -

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