Everything you learned about deal analysis is wrong. I can prove it and show you how you should be analyzing deals in this special deal analysis class.
In this class you'll learn:
- The evolution of deal analysis: some history
- It was always wrong to define cash flow as rent minus mortgage payment
- It was better (but still wrong) to consider income to be all income on the property (net of vacancy)
- It was better (but still wrong) to consider expenses to be all your expenses and not just your mortgage payment (including principal, interest, taxes, insurance, PMI, landlord paid utilities, maintenance, capital expenses and management)
- It was better (but still wrong) to go beyond cash flow to include appreciation, debt paydown and tax benefits of depreciation using my Return Quadrants™
- Different flavors of Return Quadrants™
- Comparing stocks to real estate and beginning to understand why we've been thinking about this all wrong
- A tale of two investors to illustrate the point
- A look at and comparisons of return on investment
- If we were to trade stocks on margin
- Why the The World's Greatest Real Estate Deal Analysis Spreadsheet™ was so close
- Why haven't we been doing it right?
- A discussion of reserves for real estate investors
- What should be included in reserves and what can you leave out
- How many months of reserves should you have
- Why we do NOT recommend using a line of credit for reserves
- The solution to wrong deal analysis
- A look at the Cash Flow Power Meter™ for a 25% down payment property
- Introducing RIDQ+R6™ and comparing it to traditional Return in Dollars Quadrant™
- Introducing ROIQ+R6™ and comparing it to traditional Return on Investment Quadrant™
- Should you "invest" your reserves
- Comparing ROIQ+R6™ to ROIQ+R12™
- The great lie you've been telling about your returns and why all your deal analysis prior to this has been wrong
- A look at the Cash Flow Power Meter™ for a 5% down payment Nomad™ property
- How down payment size impacts the amount of reserves you need
- A look at the Cash Flow Power Meter™ for a free and clear property with no loan
- Reserves on free and clear properties
- How to analyze deals... CORRECTLY... with The World's Greatest Real Estate Deal Analysis Spreadsheet™
- Deal analysis done right with the Real Estate Financial Planner™
- Building up reserves over time
- Plus much, much more...
Duration: 2 hours and 1 minute
Recorded: October 7, 2020
Instructor: James Orr