actually have to put out less than a penny! You would have to borrow $5,000 or loan your funds to the transaction for about six months to a year. Keep in mind that as your citrus grove grows and develops you are making money by property appreciation. And your property insures that your investment beats the inflation factor. At the end of five years as pointed out your ten acres of citrus land will be valued at around $10,000 and your home at $7,000 or more, a total of at least $17,000. This appreciated value will more than exceed your outlay in purchase price and interest. And, if you are careful in management you will not have a penny tied up in your property when the transaction is only six months old or at the end of ten years when it is finally paid for. In fact, I repeat, you should have realized a net income of at least $10,000 during the five years over and above other revenues which went to retire the mortgages. You very well could have moved onto your property at the end of the first five years and met mortgage payments out of revenue from the citrus—and met a good part of your living expenses on the income left over. Anything you earn on the side through other activities will be strictly bonus income for you. Keep in mind that your citrus grove will probably outlive you, hence it will be a good retirement income for life. If you carry this to a logical conclusion you will not, however, be satisfied with just one transaction. No need to depend on only ten acres of citrus grove when, if you don't tie any money up for more than a year in creating these packages, you can go on and on until you have four or five homes and forty or fifty acres of citrus groves. You can go on repeating the process by acquiring other acreage and building other homes on the same basis. You can rent the property and manipulate your financing as you did in the first case. This may be known as "shaky financing" but you risk losing little if you are extraordinarily careful in your management. As you can well imagine it does not take many transactions like these to assure you of a secure retirement income—for life! Next: Chapter 22 - The Last Word
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