115 Ocean Blvd, Golden Beach, Florida
This home was built right on the beach just north of Miami back in 1936.
In 1997, someone purchased this home for $2,600,000. In theory, this buyer could have bought this property with a 5% down conventional loan, meaning they would have only had to put down $130,000 towards the purchase price and the bank would have given them a loan for $2,470,000.
Today, 20 years later, this property is for sale. The asking price is $24,900,000. If the property sells at this price, that means the seller would likely see a profit in excess of $20,000,000!
That is a profit of $1 million per year, for 20 consecutive years, from an original investment of just $130,000.
Now I don’t know if the current seller is the same owner who purchased the property back in 1997, but if that owner would have held the property for 20 years, he would have hit an absolute grand slam of a real estate deal.
Moral of the story
You may not be in a position to buy a beach front home in Miami, however investing in real estate is not rocket science. Anyone with some common sense, a little bit of saved capital, and a willingness to do their homework can reap the rewards of buying a property and holding onto it for the long term. These same principles apply to most properties across all price ranges.