Webinar visualOpportunity Cost Series
Phase 4 · How to Fund College Without Sacrificing Long-Term Wealth Growth — real estate
Your Real Estate Keeps Growing. The Loan Goes Away.
A $500,000 investment property — like a Scholarship House — growing 4.5% a year. At year 15, a $300,000 loan (well under the ~70% of equity lenders allow) pays for college and is paid off over 15 years.
Property value after 0 years
$500,000
Property value$500,000
Illustration: a $500,000 investment property appreciating a steady 4.5% a year; $300,000 borrowed at 5% and amortized over 15 years. Lenders typically allow borrowing up to about 70% of equity; terms vary. Excludes closing costs, taxes, insurance and rental income. Not a projection of any property. Drag the gold handle, use ← → keys, or press Play. PageDown / PageUp moves between phases.