Rent and Price Resiliency for Real Estate Investors

Topics discussed include:

  • What is resiliency?
  • What is Price Resiliency™? What is Rent Resiliency™?
  • The two flavors of resiliency: dollars and percent.
  • Measuring resiliency on the individual property basis or the entire portfolio
  • Measuring resiliency as a snapshot in time or over time
  • Examples using over-simplified math:
    • What happens when rents go up 10%, down 10% in two different portfolios?
    • What happens when prices go up 10%, down 10% in two different portfolios?
  • Resiliency is largely about leverage
  • Thought experiment: what is more risky… 0% or 10% down payment?
  • The 7 Ways to Measure Risk in Real Estate Investments
  • How much riskier is it… a discussion of offsetting risk measures
  • Examples of interpreting Price Resiliency™ (charts)
  • Examples of interpreting Rent Resiliency™ (more charts)
  • Comparing putting 5%, 20%, 25% or 100% down – how risky are they compared to each other?
  • Evaluating risk: why 20% resiliency is not twice as good as 10% resiliency
  • Diversification and the role of resilience based on various levels of diversification
  • The counterintuitive nature of risk and reward in real estate investing
  • A brief overview of rent and price resiliency from various Scenarios we discussed in previous classes on:
  • An introduction to True Price Resiliency™ and True Rent Resiliency™ and how they differ from their non-“True” counterparts.
  • How Cash Flow from Depreciation™ acts when discussing Rent Resiliency™
  • An introduction to Vacancy Resilience™, Property Insurance Resilience™, Property Taxes Resilience™, Maintenance Resilience™, Maintenance Resilience™ and Capital Expenses Resilience™
  • The Price Resilience™ and Rent Resilience™ of James’ personal real estate portfolio.
  • Plus much more

Classes Mentioned

In this presentation James mentions several other classes:

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