Beyond Cash Flow – The Return on Investment Quadrant™

Cash Flow isn't the only return you receive with rental properties. You get appreciation, debt paydown, depreciation AND cash flow.

In this class you'll learn:

  • An introduction to James' Return Quadrants™ including the Return in Dollars Quadrant™, Return on Investment Quadrant™ and Return on Equity Quadrant™
  • When to use each quadrant
  • Which returns vary based on your down payment? Which stay the same regardless of how much you put down?
  • Which returns are speculative, variable and market dependent? Which are not?
  • Which returns put cash in your pocket now? Which are cash later?
  • What is the impact on Return on Equity as your equity increases over time?
  • Announcing the addition of the Return Quadrants™ to The World's Greatest Real Estate Deal Analysis Spreadsheet™
  • An exploration of selling properties when return on equity drops to a pre-determined level and the impact on your real estate financial goals
  • Why we don't use return on investment (ROI) over time as we hold onto rental properties
  • A quick reference to James' Deal Alchemy™ and how we can move returns from one quadrant to another
  • How rolling in upgrades when buying properties, paying points or paying private mortgage insurance (PMI) impacts different areas of return
  • Comparing 20% versus 25% down payments when buying non-owner-occupant rental properties with traditional financing
  • The impact of a rent discount or premium on all areas of return

Duration: 2 hours and 5 minutes
Recorded: October 23, 2019
Instructor: James Orr