The Best Real Estate Investing Strategies

Over the years, I’ve seen several articles, blog posts and podcast episodes that share with you the best real estate investing strategies. But, none has really taken a mathematical approach. That’s what I intend to do here using a comprehensive list of the best real estate investing strategies and the Real Estate Financial Planner™ software to do the math. Creative Financing Owner Financing (including Richard Roop’s The Ultimate Strategy™) Wrap Financing including Pre-Foreclosures Loan Assumption Rent-To-Own/Lease-Option Family including Master Leases * Sandwich Lease-Options Agreement-For-Deed Family Subject To including pre-foreclosures Buy and Hold including Short-Term Rentals and assisted living Quick Turn/Flip … Read more

Real Estate Financial Planner™ Podcast

Welcome to the Real Estate Financial Planner™ family of podcasts. Real Estate Financial Planner™ Podcast FREE REFP Inside the Numbers FREE REFP Advanced Available for Purchase Premium Available for Purchase REFP Insider Invitation Only Nomad™ Real Estate Investing Podcast FREE Check out the descriptions of them below. Real Estate Financial Planner™ Podcast FREE Stories about real estate investors striving to achieve financial independence, reduce risk and optimize their real estate investing strategies. Uses the Real Estate Financial Planner™ software to model how a wide range of  Characters choose to invest as they work toward achieving their own goals and overcome … Read more

How to Speed Up Saving for Retirement

Not willing to wait 40 years to achieve financial independence? Maybe you’re not 25 years old anymore and you NEED to speed up the saving process. If you’d like to learn how to speed up saving for retirement, then read on because we cover that topic in detail below. Defining Retirement Money Requirements So We Can Optimize Before we can optimize our speed saving for retirement, it is important to understand the retirement money requirements. To be able to support yourself in retirement you need enough money to cover your expenses. Seems obvious enough, but let’s look at the component … Read more

Stability for Real Estate Investors

Was reading Shane Parrish’s Farnam Street email newsletter yesterday about Stability and wanted to expand on it for real estate investors. Shane points out that there are two types of stability: passive and active. He goes one to talk about how passive stability requires no intervention while active stability does require intervention. In general, real estate has active stability. If you don’t pay taxes on your property—even if it is free and clear—you’ll lose it. However, I think some parts of real estate investing can be broken down as passive or active. For real estate investors, here are some examples … Read more

Investing in Rental Properties

If you’re interested in learning how to invest in rental properties on your journey toward financial independence, then you’ve found the right place. Many folks seek rentals because they believe that they provide superior returns compared to other investments like stocks, bonds, notes and speculating in commodities and cryptocurrencies. The returns you can earn buying rentals break down into four component areas that we often discuss with the Return Quadrants™. Some folks have traditional described this using the acronym that real estate is the IDEAL investment. Where: I = Income D = Depreciation (tax benefits) E = Equity build-up A … Read more

Alternate Universe Modeling™

Alternate Universe Modeling™

Alternate Universe Modeling™ is our version of doing  Monte Carlo simulations for our  Scenarios. In the simplest terms you take a  Scenario you’ve created. For example, check out Andrea in Ep 1: Andrea Buys 8 Rentals with Down Payments for 2. That does NOT utilize Alternate Universe Modeling™ but we could add variability to: Yearly Rate of Return for money in  Accounts that are invested in the stock market Appreciation Rate for  Properties in the  Scenario Rent Appreciation Rate for  Properties in the  Scenario Mortgage Interest Rates for  Properties you might buy in the  Scenario Inflation Rate for the  Scenario … Read more

True Cash Flow™

Ep 5 - Andrea - Total True Cash Flow - Monte Carlo

You’ve heard of cash flow on rental properties. Basically, it is defined by taking all the income from your rentals minus all your expenses. Cash Flow = Income – Expenses But, have you heard about True Cash Flow™? True Cash Flow™ is your traditional cash flow plus Cash Flow from Depreciation™. True Cash Flow™ = Cash Flow + Cash Flow from Depreciation™ If you’re familiar with the Return Quadrants™, True Cash Flow™ is represented by the returns from these two sections: Post Depreciation Period Depreciation for a residential rental property typically lasts 27.5 years. Since True Cash Flow™ is really … Read more

Cash Flow

Ep 5 - Andrea - Total Cash Flow - Inflation Adjusted

What is cash flow for rental properties? Why is it important? How is it calculated? And cash flow reports for your investments. That’s what we’ll cover here. First, what is cash flow for rental properties? Cash flow is the money generated from your rentals after you account for all the income from the property and subtract all the expenses for the property. Income from your property might include: Rent from properties Option fees on properties Additional mid-month payments Utility bill back Income from onsite amenities like laundry or internet Appliance rent IMPORTANT NOTE: We do not typically consider Cash Flow … Read more

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