Increasing Income by Unlocking Return on Equity
Tom assumed he was generating strong returns because he bought his property decades ago. The gross income looked good on paper—but when I evaluated his return on equity, he discovered he was earning less than 3% on his true equity position.
Client:
Tom Alvarez
Website:
N/A
Date:
January 12, 2018
Category:
Real Estate
01. Сhallenge
Retiring Without Losing Income — And Nearly Doubling Cash Flow
Client: Tom Alvarez
Profile: Owned a California rental since 2002, tired of midnight tenant calls
Tom assumed he was generating strong returns because he bought his property decades ago. The gross income looked good on paper—but when I evaluated his return on equity, he discovered he was earning less than 3% on his true equity position.
His goals:
- Retire
- Stop managing tenants
- Replace or improve his income
02. Solution
We built a DST portfolio designed to provide:
- Higher cash-on-cash income
- Passive management
- A diversified risk profile
03. Outcome
- Tom moved from stressful active management to fully passive income
- His cash flow nearly doubled compared to what he earned on his under-leveraged rental
- He reclaimed his evenings, weekends, and retirement plans
“I wish I knew about DSTs ten years earlier.”
PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS:
The case study does not reflect actual clients. Any reference to securities is based upon historical data that is publicly sourced. No statement made herein is to suggest stock market performance or future performance, and no case study is used to imply future performance.
The case study is intended to illustrate services available through the adviser. They do not necessarily represent the experience of any clients.
