Here is the 5th iteration of “Office Hours for Professionals”. In this episode James and Jassen cover some of the terminology you should understand when using the Real Estate Financial Planner™ including the difference between a Scenario and a client as well as a review of:
- Accounts – where we store money
- Properties – any type of real estate including single family homes, multifamily housing, commercial buildings, etc.
- Rules – parameters for manipulating Accounts and Properties
- Goals – how we track specific things we want to achieve (e.g. net worth, passive monthly income)
About half way through they transition into a comparison of purchasing a single Property using a 90% down payment versus purchasing several Properties using 20% down payment loans.
Watch the video of the presentation here.
You can also listen to this episode on our podcast using the player below.
REFP™ Terminology Plus One 90% Down Payment Rental vs Multiple 20% Down Payment Rentals | 005 – February 26, 2019
James and Jassen started off with an explanation of some key terms you should understand to effectively use the Real Estate Financial Planner™. They also pointed out some of the specifics for how to capitalize on the capabilities of the REFP for marketing your services to your clients. To close out the second half of Office Hours they setup Scenarios where you buy a Property with a 90% down payment, three Properties with 20% down payments, and two Properties with 20% down payments. Once the Scenarios were setup they compared them with regards to Net Worth and how long it took to reach the Safe Withdrawal Rate and Cash Flow Toward Target Monthly Income in Retirement Goal.
You can copy the Scenario in which we modeled buying a single Property using a 90% down payment loan into your Real Estate Financial Planner™ using this button.Copy Scenario into my Real Estate Financial Planner™ Software
005 Testing 90% Down with 2 Accounts, 1 Property, 1 Rule, 1 Goal
To copy the Scenario modeling 3 Properties purchased with 20% down payments use this button.Copy Scenario into my Real Estate Financial Planner™ Software
005 Testing Several 20% Down Instead of 90% Down with 2 Accounts, 1 Property, 1 Rule, 1 Goal
Or, you can copy the final Scenario modeling two 20% down payment Properties with this button.Copy Scenario into my Real Estate Financial Planner™ Software
005 Testing Two 20% Down Instead of 90% Down with 2 Accounts, 1 Property, 1 Rule, 1 Goal
- Copying a Scenario
- Copying an Account
- Copying a Property
- Add An Account to a Scenario
- Add a Property to a Scenario
- Creating a Rule
- Comparing Scenarios
- Creating a Goal