The Real Estate Financial Planner Blog

Looking for the Real Estate Financial Planner blog? If you’re looking for the latest information about testing Scenarios of different investing strategies including stocks, bonds, real estate and more then you’ve found the right place.

Check out the following blog posts or register for a free account yourself and test your own investing strategies.

The Cost to Access Equity in Rental Properties

Cost as Percent to Access True Net Equity™ - Remove Negative Values

In Should I Sell My Rental Property? we discussed the concept of True Net Equity™. True Net Equity™ is the equity you’d walk away with if you sold a  Property after all your expenses like closing costs, real estate commissions, depreciation recapture tax and capital gains taxes. But wouldn’t it be important to consider how much you needed to pay to access your True Net Equity™ via a sale? In other words, how expensive was it to access your True Net Equity™? We could measure it in raw dollars and I could show you charts for the Closing Costs When … Read more

Treasure Chest – Recommended Order When Acquiring Properties

The following is a list of the classes included with the Real Estate Investor Treasure Chest in the recommended order for those that are still acquiring more properties (or even buying your first property). How to Get Your Next Deal Done After Coronavirus How to Get Down Payment Side Hustles: Earn Down Payments Faster – The Amazon Class Real Estate Investor Buying Process Overview Establishing Your Buying Criteria Workshop Buying New Houses as Investments and Nomads™ – If you’re considering buying new construction, this class will be especially helpful. How to Select a Real Estate Agent Finding Amazing Real Estate … Read more

True Net Equity™

Traditionally, equity (for real estate investors) is defined as the property value – mortgage balances. Equity = Property Value – Mortgage Balances However, in almost all cases, equity defined that way means that only a portion of that equity “belongs” to the real estate investor. To access that equity the real estate investor must either seller the property or cash-out refinance the property. In both cases, some or… possibly all of the traditional equity… is consumed by sale or refinance costs. In the case of a refinance, there are costs to the lender and title company to access the equity. … Read more

Return Quadrants™

If you think about the 4 areas of return you get from owning a rental property they are: Appreciation – The tendency for property values to increase over time. Cash Flow – The net proceeds you get from collecting rent on a property after all expenses. Debt Paydown – The amount of the loan that is paid down each year (presumably—albeit indirectly—by your tenants) when you make your mortgage payments. Depreciation – The tax benefits you receive by statute from owning rental properties. As I was teaching real estate investing classes, I would methodically go through each of these 4 … Read more

The Ultimate Guide to VA Loans

Estimated Monthly Payments – All Loans If you are a veteran… thank you for your service… and you likely qualify for one of the best loan programs ever for buying properties… the VA loan. Learn all about this nothing down loan option in this class. In this class you’ll learn: The many benefits of VA loans VA guaranteed loans and what the benefit of that is for you Eligibility requirements of VA loans VA loan limits including full benefits, partial benefits and the loan limits map VA loans for investment properties Occupancy requirements for VA loans Lender selection Lender programs … Read more

How to Improve Rental Property Cash Flow

Cash flow is a major factor when calculating whether you’ve achieved financial independence. In fact, we know that it is a combination of cash flow and the safe withdrawal rate of your other non-real-estate investments that determines your standard of living. With that knowledge, let’s look at the top 17 ways to improve cash flow on your rental properties. 1. Rent By The Bed/Bedroom Often renting a house by the bed or the bedroom will allow you to significantly increase the amount of cash flow you’re able to get from the property. Many house hackers use this strategy to significantly … Read more

Option

If you are considering offering a property to a tenant-buyer on a lease-option, consider having the following review by your attorney before using. This document has severe restrictions in many states. Do NOT use without consulting an attorney first. IMPORTANT NOTE: We are providing you these documents as examples for entertainment purposes only and you MUST have them reviewed and approved by your own attorney before using them yourself and in your own business. By using them you agree to hold us harmless. Seriously, don’t use this stuff without having your attorney review and approve them. Download Lease as editable … Read more