Before continuing, please be sure to read about multipliers.
If you own a house and want to sell it, you will get the price you sold it for the price multipied times 100.
However, if you buy a house and sell it for a loss you have to first increase its value by 10% for the following:
You can sell it for less than what you paid and you will then get the amount multiplied times 1,100.
Scenario 1: Check out the following example:
Andre buys a house for $100,000.
He sells it for $200,000 and he gets (100 x 200,000) which is (20,000,000).
However, we have a reverse process in real estate when you sell for a loss.
Check it out in the next example;
Scenario 2: Check out the following example:
Steve buys a house for $100,000.
Note a minimum 10% increase of value of each piece of real estate* should occur before selling for a loss.
So if Steve buys a house for $100,000 and sells the house for $0.01 he must first increase its value to a total amount of $110,000.
Then a sale of 1,000 times 110,000 = 110,000,000.
Massive home improvement and extraordinary profits will mean that many people will take this option.
Scenario 3: Check out the following example:
First Ned buys a house for $1,000,000
He adds $100,000 in improvements (10%)
Ned sells it for a penny
He gets $1,100,000 * 1,000 = $1,100,000,000
An End to Homelessness
Since many of the homes shall
be sold for one cent ($0.01) homeless persons will
all be able to afford houses.
The real estate multiplier for losing
money should eliminate homelessness.