Lee is a typical home buyer. Driving around a housing development one Sunday afternoon, Lee sees a newly- constructed home selling price of $165,000. After surrendering $20,000 of hard earned savings, Lee closes the sale and becomes the proud owner of a 30- year fixed- rate mortgage of 7.5%. Having borrowed a total of $150,000 ( to cover the purchase plus closing costs) and making a very long term commitment, Lee look forward to 360 monthly payments of $1,048.82 each. Over the thirty-year mortgage term, Lee will pay a total of $377,575 in interest and principal. And, in thirty years, Lee will become full owner of his home and can invite all his friends to his mortgage- burning ceremony.

Jan is less traditional. Weeks of reading ads and driving through new developments have this shopper convinced that she wants to become more active in her new home purchase. Armed with her CUSTOM HOMES BUILT BY YOU package, finding supplemental references in our “Suggested Reading” section and doing a bit of additional research, Jan finds the right Contractors and builds a first home that has a fair market appraisal of $165,000 ( the same as Lee’s). Keeping a constant eye on quality and cost control issues over the few months of planning and construction, Jan realizes the total cost of her home is $140,000 an impressive (but reasonable) $25,000 savings for a diligent owner builder.

Jan was able to save by being more involved in her building project and doing some very aggressive contractor, material and fixture shopping.

Jan made the same $20,000 down payment as Lee, but as a 20- year mortgage principal of $125,000, $25,000 less than Lee’s new home of like quality.

Compared to Lee’s monthly payments of $1,048.82, Jan has monthly mortgage payments of $1007, but for 10 fewer years. The total paid on Jan’s 20- year mortgage will be $241,680, nearly $140,000 less than Lee’s!

For most home owners that $140,000 could be better spent for investments, collage for kids, retirement security, vacations, or other worthwhile dreams.

But we are not done yet! Jan realizes the life changing benefits of using our CUSTOM HOMES BUILT BY YOU system of new home ownership and is motivated to achieve even greater financial freedom. She has discovered that the degree of organization and control she achieved through using her CUSTOM HOMES BUILT BY YOU package made the process of owning her first home far more comfortable than she ever imagined. After keeping this first home for two years, Jan can sell it and use the profit (currently with no IRS tax penalties) as a down payment no a “nicer” home. Assuming an annual home appreciation of 6%, Jan’s home will now have a fair market value of $185,000. In the two years of ownership Jan will have paid the principal down by about $5,800. That means the sale of this home, after sales commissions and other costs, will give Jan a lump sum of about $60,000 for the next down payment.

Building Home Number Two, Jan targets a fair market price of $225,000. Jan plans to save about 20% on this home as well. Using the steps, forms and systems described in CUSTOM HOMES BUILT BY YOU package again, Jan has her second home built for $191,000? Her down payment of $60,000 brings the principal to be borrowed down to $131,000.

Her mortgage is 20 years again, and at the same interest rate. Jan’s monthly mortgage payment on this new home is $1055.33, only slightly higher than the first mortgage.

Jan waits two more years and does it again! Home number two sells for $253,000, with an equity of $122,000. The full equity is dedicated to her third home which has a fair market value of $300,000. The cost to build the third home is $240,000, with a down payment of $122,000, leaving a mortgage of $118,000. Jan’s monthly payment on her 15-year mortgage is $1,094, only $40 a month more than the mortgage on home number two, but for five fewer years!

Jan now waits three years and builds a custom $400,000 home, saving a modest 25% through the tips and guides gained from her CUSTOM HOMES BUILT BY YOU experience. She’ll save $75,000 in construction costs. Her down payment, from the sale of her third home (sold for $357k-6% annual appreciation), is $264,000. The full cost of this forth home is $325,000. she owes only $61,000 on this dream home and has gone from a $160,000 ‘starter “ home to a custom home with a fair market value of $400,000, and can be mortgage free in less than 15 years!

This wealth building process requires three or more homes. Current IRS laws require owning and living in each home for two years to avoid capital gains taxes. Jan can now be mortgage free in five years, and live in a custom designed dream home.

Between Jan and Lee, which form of financial security would you choose?