Disclaimer: BIC is not in the business of providing paid financial, legal, or tax advice. Please consult a licensed professional when making investment decisions. BIC is also not acting as a real estate agent or broker, or offering to sell properties to investors. All the figures above for interest, instant equity, cash flow and appreciation are based on company financial spreadsheets for 2013. It's also important to mention that appreciation in Bakersfield is not likely to be 29% in future years. Most likely it will decrease about 6% per year until the next bubble we estimate to be in mid 2017. The formula for instant equity is market value minus sales price at the time of purchase. Appreciation is the amount your real estate increases each year after you purchase the property. This amount is based on doing an appraisal at the end of each year. Cash flow is the net yearly income for the property divided by the total amount of cash necessary to purchase the property. Typical cash flow for houses with a mortgage is 17% and cash only returns are 11%. Since we started in December of 2012 we've made a lot of improvements. Now almost every property we buy has instant equity. We're also getting large enough to do wholesale transactions and larger projects e.g. building fourplexes. Plus we've found ways of increasing the cash flow from each property from the typical $1,150 rent to $1,800 per month for a three bedroom house. Vacancy rates are at 5% and should even get smaller with our waiting list. We're estimating overall returns to members to be about 30% in 2014, 27% in 2015, and 24% in 2016 if we don't make any changes. We don't expect returns to drop below 21% because notes are consistently paying 23.9% averaged over the last two years and their default rates only changed by 1% in 2006 to 2008. If these returns seem unrealistic, please keep in mind that the profit margin in a healthy company is normally between 25% and 35%. The only difference is that we're sharing that profit with you instead of eating it up with operating expenses. High returns are an indication of financial strength. We also pay out all income in the form of qualified dividends, which are normally taxed at 15% instead of 30% to 50% like regular income. We are even setup to receive funds from retirement accounts like 401k's, IRA's, Pensions, TSA's, etc. Our company is very transparent and also carries plenty of insurance to protect you from the unexpected. There are no penalties for cashing out early, funds are normally 100% liquid, and you can either receive a monthly check or allow your income to compound. Originally we wanted to help our family to invest wisely and buy properties together, and it grew into so much more. We really are here to help you not only make money without all the hassle of dealing with tenants and toilets, but also by preventing you from making learning mistakes on your first three to five houses e.g. overpaying, underestimating costs, etc. We're here to make you money, not take your money.
BIC offers many ways to create passive income or cash flow in increments as low as $10 on real estate and notes in regular accounts, your new Self Directed IRA or a solo 401k. We also help you compound your interest daily or monthly to make your portfolio grow about 1.45 times as fast averaged over 10 years. The average net annual return on notes is 23.7% including losses. Bakersfield real estate averaged 11-15% in instant equity, 11-21% in net cash flow, and 23-29% in appreciation. That's a 57% return on Bakersfield real estate in 2013. Overall, all the members made 33% in 2013, with a guarantee of principle, and a minimum return of 15%. This year we're estimating our overall return to be about 30% plus or minus.
BIC buys the best income opportunities and makes it easy for members to actively participate by owning private stock in the corporation. No credit or income necessary, we will actually buy the properties for you, get the tenants, collect the rent, do the repairs, and take care of all of the hassles. You either receive a monthly check or allow your money to compound. BIC also pays out income in the form of qualified dividends, so you're only paying about 15% in taxes on non-retirement accounts. Statements are sent out on the 1st Wednesday of each month to show you how you're doing and you can even receive a monthly check.
Our Meetings are at 8800 Stockdale Hwy Suite 100 Bakersfield, CA 93311. The nearest cross street is Coffee Rd. We're right accross from CSUB. You're welcome to attend the meeting for free and bring as many people as you want. Please click on club meetings to see our meeting schedule.