Zero College Debt Program

Dear Parents and Students:

Here is a comparison of financing college the traditional way compared to using real estate and following this program.  This is offered as a way to provide you a side by side comparison.

This program assists in buying real estate, identifying tax advantages and real estate deductions, benefits and support programs and ongoing educations for first time home buyers.  We recommend you consult your tax accountant to determine your overall advantages.  All numbers are used for analysis purposes only and are designed to show you an alternative to help pay for college. 

Action	Traditional Financing	Zero College Debt Program	Advantage of Zero College Debt
Student is Accepted at College of Choice
Apply for Loans & Grants	4 Years of College	First Year in a debt position.	Minimize overall debt after graduation.
Pay for Housing & Tuition	4 Years of debt	First year in debt position.	Only first year in debt position.
Purchase home at end of Yr 1.  (We are not recommending the purchase in Year 1 because there are too many variables contributing to a student not continuing at that college/ university.  This is a personal/ family decision.  Certainly, a home can be purchased earlier.  Create your business plan and let us know how we can help.)		Purchase min. 3-bedroom home at the end of year 1 and find tenants.  Work with one of our REALTOR®s to determine market rents.  Payment for university housing is redirected to personal home.  Generate rents to pay-as-you-go. We will help determine local market rents to maximize your return.	Generate rents to pay tuition and personally finance college. Reside in home and eliminate need to pay for on-campus housing.  Save money normally an expense, now making an investment that may be recovered upon sale of home. Talk with your CPA to see if you qualify for the 2009 Tax Credit of $8,000.
Year 2 Apply for In-State Residency status	No action, in general you do not qualify for In-State residency while living in Campus Housing.  Each state has their own rules so we will need to determine rules for your college.	Work with College counselor to understand requirements and qualify for in-state residency for year 3 & 4, where possible.	Qualify for reduced tuition rates in Year 3 & 4.  Usually saves about 50% on tuition rates, where differential exists and in states where changing residency status is possible.
Parent’s Benefit as an investor		When you visit your son or daughter, you can claim this as a business expense to check on your investment.  Total deductions up to $25,000 yearly.  Check with your CPA.	Yearly deductions while your child is in college.  Preserve your capital and regain initial investment upon sale of home.
Graduation	Accumulate all college loans and decide on how to pay them off.	Many college expenses have been paid from the rents.	Student has  minimized debt to pay off.
Sell Home		Sell home, recover down payment.	Profit or loss is determined by market conditions.  Even if take a loss on sale of house, still gain significantly by using program the way it is designed.
Paying off college loans	May take 10 to 20 years to pay off debt.	Minimized debt to pay off.	Each scenario is determined by local market conditions.
Note for Out-of-State Students		Live in off-campus home owned by another student.	Establish residency in Year 2 and take advantage of in-state tuition.  Reduces financial liability by about 50% where differential exists.  We will guide you through the process and assist you in understanding  residency requirements.

This program is designed to help students minimize their long-term debt after college. Real Estate can help establish residency and qualify for in-state tuition rates and provide a revenue stream while in college.  Real Estate investing is the best possible solution to financing college.

You can get more information by attending one of our national seminars.  We will walk you through the process and provide advice at every step of the process.  Once your child has decided on a college, we will put you in touch with a local REALTOR® who is familiar with our program.  You will be asked to sign a Buyer’s Representation agreement so that the REALTOR® can fully represent you in all negotiations and help you get the best deal possible. We look forward to working with you and your son/daughter. 

Sincerely,

Zero College Debt Staff