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