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 sell 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

Market Stats

If you’re interested in learning more about real estate market stats in Denver, Fort Collins, Colorado Springs, Pueblo and other Colorado real estate markets, you’ve found the mother-lode. Denver Metro Real Estate Market Trends Report These are stats for the Denver Metro area updated monthly. They are from the Denver Metro Association of Realtors. Here’s a preview, but download the full, high resolution PDF below. Download Denver Metro RE Market Trends January, 2022 Or, download any of the previous monthly updates: December, 2021 October, 2021 September, 2021 August, 2021 May, 2021 April, 2021 March, 2021 February, 2021 January, 2021 Year … Read more

Expected Value

Expected Value is a mathematical term used in probability and statistics to determine what a typical value might be. For a more detailed definition and discussion, check out wikipedia’s article. Here’s how I use it with the Real Estate Financial Planner™ software to model my own real estate investments. First, I model my entire real estate investing strategy by entering it in the software. See the How to Create a Real Estate Financial Plan™ post to get a good tutorial on how to enter in your own real estate investing strategy. When I do my modeling I do include things … Read more

Interest Rate Buy Down Spreadsheet

Interest Rate Buy Down Spreadsheet

Please login below to download the latest version of Brian’s Interest Rate Buy Down Spreadsheet. Or, create an account to access this premium content. Classes On Buying Down Your Interest Rate The following are the classes that teach you how to use this powerful spreadsheet. Arguably the Best Class of the Year – Part 4Buying Down Interest RatesBuying Down Interest Rates – 2020 EditionImproving Cash Flow by Buying Down Interest Rates Login

Check Market Stats Checklist

Before we consider buying any property, I recommend that you know the type of market that you’re about to purchase in. For me that involves checking the following market stats and discussing them with me (if you’re my client in Northern Colorado) or your local real estate if you’re in another market. Check Market Stats Checklist Before we consider buying any property, I recommend that you know the type of market that you’re about to purchase in. For me that involves checking the following market stats and discussing them with me (if you’re my client in Northern Colorado) or your … Read more