:48:47
This is tape two, side one
:48:50
of the Larry Jarvik system.
:48:53
Welcome back.
:48:54
We've discussed the difference
:48:56
between liquid assets,
frozen assets,
:48:58
and what I like to call
captive assets.
:49:00
And by now, you've filled in
the chart on page 113.
:49:04
Keep the chart handy while we
figure the capitalization rate
:49:08
on your investment.
:49:09
You'll see how simple it is
to turn short-term paper
:49:13
into long-term,
interest-free income.
:49:17
I'll walk you
through one example,
:49:18
and you can go back and do
the calculations again,
:49:21
substituting your own numbers.
:49:23
Say you're buying a fourplex
:49:25
with an asking price
of $ 150,000,
:49:28
and your net operating-income
figure is $9,000.
:49:32
Divide the operating income
into the asking price
:49:35
and what do you get?
:49:36
That's right... 6%.
:49:39
Now, do your own calculations,
and when we continue,
:49:42
I'll finish talking
about asset conversión.
:49:45
Remember to bear in mind
rule two
:49:48
of my Seven Golden Rules
for Success.
:49:55
Shit!