The Ultimate Guide to Cash on Cash Return on Investment

Welcome to the Ultimate Guide to Cash on Cash Return on Investment for real estate investors (also known as “Cash on Cash ROI”). In this guide, we will start by discussing what the basic definition of cash on cash return on investment is and then move on to much more advanced and nuanced topics related to cash on cash. Cash on Cash Return on Investment = (Net Operating Income – Mortgage Payments) ÷ Purchase Price Cash on Cash Return on Investment is defined as the Net Operating Income (often abbreviated as NOI) minus all Mortgage Payments divided by the Purchase … Read more

The Ultimate Guide to Cap Rate for Real Estate Investors

Welcome to the Ultimate Guide to Cap Rate for Real Estate Investors (also known as “capitalization rate”). In this guide, we will start by discussing what the basic definition of cap rate is and then move on to much more advanced and nuanced topics related to cap rates. Cap Rate = Net Operating Income ÷ Purchase Price Cap rate is defined as the Net Operating Income (often abbreviated as NOI) divided by the Purchase Price. In The World’s Greatest Real Estate Deal Analysis Spreadsheet™ cap rate is calculated for you. What’s a Good Cap Rate for Real Estate Investors? Cap … Read more

Real Estate Nomad™ in Your City

This class was taught live by James Orr on Black Friday November 25, 2022. In this class James walks you through the  Baseline Nomad™ for YOUR CITY. He created over 300  Scenarios utilizing a very basic Nomad™ real estate investing strategy but using the home prices, rents, insurance, taxes, income, and goals for someone in that city. Click to Select Your City  Model Of course, you can change any of the assumptions in case your unique situation is different than what he used. Go to the Models page and select your city, then the  Baseline Nomad™ Scenario to follow along … Read more

Modeling Your Real Estate Investments – Rules Overview

This class was taught live by James Orr on November 23, 2022. In this class James covers how to model your own real estate investing strategy using all the different  Rules. Scenarios  Scenarios are buckets for grouping  Accounts,  Properties and  Rules together to model your entire real estate investing strategy. Model Your Own Plan As we go through these  Rules, think about how you might use them to model your own unique situation. If you haven’t already done so, create a free Real Estate Financial Planner™ account. Basic Steps The basic steps for modeling your own plan is: First, create … Read more

Are FHA Loans for Suckers?

You can purchase a property using an FHA loan with just 3.5% down. Heck, sometimes you can even get down payment assistance to help with the 3.5% down payment. But there are other loans with lower down payment options. However, when you put less than 20% down, FHA loans require you buy insurance to protect the lender in case you default on the loan. This insurance… called Mortgage Insurance Premiums (MIP) for FHA loans or the equivalent of Private Mortgage Insurance (PMI) on other types of loans… has both an upfront premium and a monthly premium. And, with FHA loans … Read more

Having Confidence with Modeling Retirement with Real Estate Investments

Mortgage Interest Rate Confidence Meter™

This class was taught live by James Orr on October 13, 2022. In this class James introduces the brand-new Mortgage Interest Rate Confidence Meter™, what it is and how to us it. You’ll discover what a reasonable mortgage interest rate is when modeling future real estate purchases and how to tell if the assumptions someone else is using is optimistic or not. Resources Mentioned In this presentation James mentions the following resources: 30-Year Fixed Rate Mortgage Average in the United States from The Federal Reserve Download the Mortgage Interest Rate Confidence Meter™ for Microsoft Excel The World’s Greatest Real Estate … Read more

Mortgage Interest Rate Confidence Meter™

Mortgage Interest Rate Confidence Meter™

Thinking about buying properties over the next several years? Are you wondering what a reasonable mortgage interest rate to use should be? Use the Mortgage Interest Rate Confidence Meter™ to see how reasonable your mortgage interest rate is using historical 30-year mortgage interest rate data from the Federal Reserve’s database of historical 30-year mortgage interest rate data going back to 1971. Just enter in your mortgage interest rate and read the meter to see how confident we are that you’ll be able to get that rate in the future (based on historical data). This Excel spreadsheet download is available for … Read more

Impact of Rapidly Rising Interest Rates on Real Estate Investors

Interest Rate Hikes

This class was taught live by James Orr on October 7, 2022. Topics discussed in this class include: Interest rates have gone up rapidly recently. Is this the fastest we’ve seen rates rise? The most we’ve seen rates rise? Federal Funds Rate versus Mortgage Interest Rates Infographic of 35 Years of Interest Rate Hikes from VisualCapitalist.com Interest rates hikes and rate of change of the rate chart 30-Year Fixed Rate Mortgage Average in US What is the impact of rapidly rising interest rates for real estate investors. What if you ignored financing and bought properties free and clear (with some … Read more

Ep 24: Norm and Norma Buy Free and Clear Rental Properties

Pro Tip: Listen to the podcast below and while you’re listening follow along with the charts below. Then, when you’re done, copy the  Scenario to your own Real Estate Financial Planner™ account to change any of the assumptions. Welcome to the Real Estate Financial Planner™ Podcast. I am your host, James Orr. This is Episode 24. Today we’re going to continue with Norm and Norma’s story. Norm and Norma have been sharing some of their ideas for achieving financial independence with some of their friends. One work friend in particular is a little surprised that they’re considering using mortgage debt … Read more

Ep 23: Norm and Norma Do Fix and Flips Then Invest in Rental Properties

Pro Tip: Listen to the podcast below and while you’re listening follow along with the charts below. Then, when you’re done, copy the  Scenario to your own Real Estate Financial Planner™ account to change any of the assumptions. Welcome to the Real Estate Financial Planner™ Podcast. I am your host, James Orr. This is Episode 23. Today we’re going to continue with  Norm and Norma’s story. In the previous episode, Episode 22,  Norm and Norma decided to buy properties that need work, rehabbed them and sold them to generate extra chunks of cash from capital gains. They took that extra … Read more