Free College For Your Child

Simple Man's Guide to Real Estate

Credit Repair

Principles of Success

Bill's Blog, "Success By Design"

Contact

Special Free Report

Brought to you by "The Simple Man's Guide to Real Estate"

The cost of college today is exhorbitant. By the time your child grows up, it will be MUCH higher. Here is a simple method for providing your child with a free college education.

A few months before your child is ready to begin college, locate a four bedroom house in the area that is for sale. Make sure it is - or can be - zoned for unrelated persons living together. Assuming that in this example the house sells for $120,000 and you make a $20,000 down payment (or, if you use the strategies in the The Simple Man's Guide to Real Estate course, you make no down payment and pay as little as $80,000 for the house with a 100% mortgage), purchase the house and post all over campus - and in the college newspaper - that you have rooms available for lease to students. Furnish with used furniture (Salvation Army or Goodwill ?), with students in mind.

Your mortgage, taxes, insurance and utilities will be under $1200 per month (under $1000/month using the Simple Man's strategies). Rent each of three bedrooms to 2 students each at $300/month, everything included (except meals, which can be included for additional cost). That's six students at $300/month for income of $1800/month - at least $600/month profit for you. But that is just the beginning.

The fourth bedroom is for your child alone. You enter into an agreement with your child that you will provide free room plus a stipend (allowance) in exchange for the child managing the house. The money you pay your child can reduce your taxes. Trips by you to the campus are deductible as a business expense, as you are checking on your investment and its management. Ditto when your child comes home for the holidays - use this opportunity to discuss affairs of the house, making the child's trip expenses at least partly deductible.

So far, your child has a free college room that costs you nothing, and has an income that provides your childs books, etc. And you can deduct most - if not all - of your costs from your taxes (even the mortgage, taxes and insurance, as of this writing). This savings can be used to pay additional college costs.

Now here is the kicker: when your child is ready to graduate, let other parents whose child will be attending that college know how you got free college for your own child. Offer to show them how, and sell them the house. With 4 years appreciation at about 5% per year, you can sell the house for about $140,000 or more, giving you at least a $20,000 profit. This can be used to pay off any remaining costs such as student loans, etc.

The $600/month profit from rents for 4 years totalled nearly $30,000. Tax savings come to around $10,000 more. Add to this the $20,000 profit from the resale of the home and you get $60,000 - enough for most colleges. (Make sure the students' parents sign the lease for a FULL YEAR, so you have legal recourse and the house is not losing money in the summer).

NOTE: These figures based on today's costs. College costs will rise in the future, but so will rents and property values, so the profits of this strategy will still cover the costs of college.

Oh, and the responsibility your child has will earn him/her a good deal of experience, useful in later life.

ATTN. WEBMASTERS: Feel free to link to this page to provide your visitors
with free access to this information (access must be free). A reciprocal link can be arranged upon request (no links to adult sites or sites of questionable content).