Should I Refinance My Rental Property?

Model A Refinance Using the Real Estate Financial Planner Software To model a refinance: Make a copy of the  Scenario Make a copy of the “Already Owned” Property. Edit the copy to change the interest rate and loan balance and payment. Add the “refinanced” version of the property to the new, copied  Scenario replacing the one that was not refinanced. If you’re modeling a “cash out refinance” add the amount of cash you received to your bank account. Rerun the  Scenario and compare the two using the  Charts.

Cash Flow from Depreciation™

Cash Flow from Depreciation™ is your gross depreciation times your estimated tax rate. It gives you approximately how much money you expect to receive from a rental property in tax benefits. You can choose to “take” these tax benefits through a larger refund at the end of the year, paying in less taxes at the end of the year or, by adjusting your exemptions on your paycheck, monthly as extra money in your monthly paycheck from your job. See also Return Quadrants™.

Initial Setup of Your Situation

The following describes two things: A rough outline of the Initial Intake Zoom Meeting when you hire us to do a Your Initial Real Estate Financial Plan™ Consultation, and How we recommend you go about setting up your initial situation in the Real Estate Financial Planner™ software if you’re doing it yourself Time Estimate If you were to hire us, for a typical person with a reasonable number of  Accounts,  Properties and  Rules, the initial intake call will take about an hour. If your situation is complex or you’re doing it yourself and learning as you go, expect it to … Read more

Real Estate Investor Treasure Chest™

For Buy-and-Hold Real Estate Investors, Nomads™ and House Hackers… Serious Real Estate Investor Education and Tools, Without All The Sleazy Hype… …and all for the cost of a couple burritos. You get 1 full year of access to: Over 100 premium real estate investing classes Over 200 hours of video training Downloads: The World’s Greatest Real Estate Deal Analysis Spreadsheet™ How to Improve Cash Flow on Rentals Checklist Buying Criteria Worksheet Rental Property Bookkeeping and Accounting Spreadsheet Qualified Business Income Deduction with Rental Property Log Interest Rate Buy-Down Spreadsheet Off Market Deal Business Marketing Tracking Spreadsheet 240-page book with detailed … Read more

After Investor Meeting Checklist

The following is the checklist to be used primarily by a real estate agent after an investor meeting. It is based on what I use as our checklist for preparing for our investor classes in Fort Collins.

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Why Start and Run a Real Estate Investor Group

So, we've talked about the different types of real estate investors, what they're typically looking for, and how you might work with them as a real estate agent running a real estate investor group. Now, I'll get right to it: why start and run a real estate investor group.

I think there are 4 compelling reasons for starting and running a real estate investor group.

  1. Toll Bridge
  2. Saleable, Appreciating Asset
  3. Attract Great Clients
  4. Simplified, Value Adding Stay In Touch Tool

Toll Bridge

“In an inflationary world, a toll bridge (like company) would be a great thing to own because you've laid out the capital costs. You built it in old dollars and you don't have to keep replacing it.” – Warren Buffett

Once you take the time to setup your real estate investor group, it continues to produce for you over time. When we talk about ways to monetize your real estate investor group, you will also see that you can get paid for access to your group or profit directly from the group by offering your services as a real estate agent to some of the members.

Saleable, Appreciating Asset

Last year in our local market, one of the investor clubs sold. While I do not have inside information as to the sale price, my best guess is that it sold for just under $100,000.

Investing in growing your own investor group is investing in a saleable, appreciating asset. The longer you own and grow your group, the more it is worth.

A real estate agent coming into my market could buy my real estate investor group from me and start generating commissions from it right away. It is like buying an established, up-and-running, highly profitable, lead-generating machine.

Attract Great Clients

I consider the first two reasons for starting and running an investor group as bonus reasons. The next two reasons for starting and running an investor group are the best reasons of all.

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Save For College Nomad™

If you're a candidate for the Save For College Nomad model, you're probably short on sleep so I'll try to keep this short. It is just one of the five types of Nomads.

Save For College Nomads

The Save For College Nomad is typically a strategic thinking parent of young children with a good to great job who realizes that they need to be planning now to be able to pay for college for their kids while they're still relatively young. The sooner you start, the easier (and less expensive) it will be.

In the most vanilla of versions (and there are lots of variations), you would be buying a property, moving in and living there for one year before converting it to a rental property. You'll repeat this 10 times.

In an ideal world, you start this plan the year your first child is born (or earlier). I'll show you the math if you start a little later below (towards the end).

Save For College Nomad Model Assumptions

I've made some assumptions to create this model for you and I'll be explaining what my assumptions are. We can evaluate the Save For College Nomad model with other assumptions to see how that affects it as well and I will do that in the future for you.

I will tell you that I believe, deep down, that the assumptions I use are very conservative but let me know if you'd like me to run it with different assumptions.

Houses

I've modeled buying 10 houses over 10 years in this example. I am using an actual property that is currently for sale in Northern Colorado as of July, 2015. So, yes, these numbers are real.

You'll be buying the first property for $238,875. That price would include 2% in closing costs in the form of Seller Concessions.

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Change of Address

After buying a Nomad property, you should remember to change your address with various companies. We’ve integrated the following list right into the Ultimate Nomad Checklist and the list of things to do immediately after closing, but here is a stand alone list for your reference. If you have additional suggestions, please do let me know.

Volunteer

Thank you for your interest in volunteering to help run one of our local chapters of the Nomad Investor Clubs on Meetup. We appreciate your interest. Nomad Investor Clubs is a volunteer run organization that relies heavily on volunteers to coordinate and facilitate the local meetups chapters on Thursday evenings. How Are Chapters Organized? Most weeks, our local meetup chapter will have a discussion meeting. In some ways, we operate like a book club where Nomads all read the same book each week then get together to discuss it. Except… we’re not reading a book… we’re watching a class on … Read more