Cap Ex – The Silent Killer – 2016 Edition

Capital Expenses from Deal Analysis Spreadsheet
Capital Expenses from Deal Analysis Spreadsheet

Question: what's one of the most over-looked, yet most devastating expense on rental properties? Answer: capital expenses. It can be the silent killer that turns amazing deals into flea-infested dog-deals.

In this class you'll learn:

  • Why buying these "out of state" cash flow deals isn't always what we think
  • Calling a pig a pig
  • Deals that "inspire your desire"
  • A deeper look into vacancy and factors that impact vacancy
  • Property maintenance and why generic X% of rents for maintenance is silly hogwash
  • Property management - minimums and how property management is impacted by vacancy
  • Updated analysis and a deeper look into return on investment
  • What are capital expenses?
  • How much are capital expenses and how frequently do they come up?
  • Using The World's Greatest Real Estate Deal Analysis Spreadsheet™ and the Capital Expenditures (CapEx) Calculation Table to estimate what you should be using for CapEx on your rentals
  • Beating "typical" costs through personal advantages like being on-site, doing the work yourself, managing the property/work yourself, having the right connections for discounts
  • The 4 areas of return... it is not always about JUST cash flow, right?
  • Not all markets appreciate... calculating returns for a variety of reasonable market conditions
  • Rent sensitivity and the impact of different rent appreciation rates (what happens if rents don't go up as much as we'd like)
  • Brian being SOOOOO unreasonable
  • What if you just paid cash... what does it look like then?
  • A surprising discussion on how property value (price) affects the impact of CapEx
  • Life isn't fair and neither is Brian's estimate of CapEx... or is it?
  • Higher price and its impact on CapEx
  • False beliefs exposed: aren't the returns almost identical on properties?
  • Completely biased and cherry-picked comments from a popular real estate investor website that are commonly accepted as fact but might be the rantings of a delusional psycho-path
  • Package deals and CapEx
  • Tips if you're going to buy turn-key cash flow deals (and some potential concerns)
  • What if you've already drank the Kool-Aid?
  • Long-term portfolio optimization through thoughtful, discriminating acquisition
  • Some final thoughts...
  • Plus much much more...

Duration: 1 hour 46 minutes
Recorded: August 31, 2016
Instructor: Brian Williams