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Kubs Den “ INSANITY OF PAYING 7% ON AN ASSET (FARMLAND) THAT ONLY EARNS 2%”
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coup
Posted 11/16/2023 22:32 (#10485072 - in reply to #10485000)
Subject: RE: Kubs Den “ INSANITY OF PAYING 7% ON AN ASSET (FARMLAND) THAT ONLY EARNS 2%”


USA
jdironman - 11/16/2023 20:31

Yes write off interest.

How does writing off interest improve ROI on a land purchase?




$6,000 cash @ 5% = $300 Vs buying $10,000 acre ground with the $6000 cash

$4,000 acre loan x 8% = $320 + $35 acre Re tax = = $355

$400 rent - $355 = $45 acre. Plus will have to pay income tax on yearly principal payment.

$45 ROI on $6000 cash used to purchase land = 3/4%.


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