📚Peter Considers 25% Down Payments Instead of 20% Down Payments

Previously, in our series of Real Estate Investor Stories, we met Peter from Denver, Colorado. Previously, we has focused on buying ten 20% down payment rentals to achieve financial independence. Today, Peter is going to go consider saving up 25% instead of 20%. Why? Because the interest rate for 20% down payment loans is about 3.625% right (as I write this) and 25% down payments are 3.25%. Peter is wondering: Will waiting a little longer to save up for my down payment but getting a lower interest rate and borrowing less improve my cash flow and allow me to achieve … Read more

📚Peter Seeks Financial Independence in Denver

Over the last several weeks, I’ve been telling a series of unrelated Real Estate Investor Stories. Each story featured a different investor, their situation, their fears, their strengths, their resources and ultimately how their plan could have worked out based on output from the Real Estate Financial Planner™ software. Today, I am trying something different. One character, Peter, from Denver… considers a variety of different real estate investing strategies. In this first story, we meet Peter, a young professional in Denver seeking financial independence. About this first episode with Peter: Peter is starting with $25,000 in savings He has a … Read more

📚Anthony Works in the Grocery Store Savin’ His Pennies for Financial Independence Someday

“Anthony works in the grocery store Savin’ his pennies for someday Mama Leone left a note on the door She said, Sonny, move out to the country Workin’ too hard can give you A heart attack (ack) You oughta know by now (oughta know) Who needs a house out in Hackensack Is that what you get with your money” — Billy Joel’s Movin’ Out (Anthony’s Song) Meet Anthony Anthony, the manager of a grocery store, and his wife, Martha, a school teacher decide to utilize the Nomad™ real estate investing strategy to achieve financial independence. The happily married couple live … Read more

Sample Scenario 008 – Investing $100,000 in Stocks at Fixed 8.97% per Year while Earning and Spending $5K per Month and Buy 10 Nomads™, Start Earning $2K/mo From Social Security in May, 2040

This is similar to Scenario 006 except in this Scenario we are adding in that you start collecting $2,000 per month (in today’s dollars) in May, 2040. We buy a home to live in with 5% down payment and lender-paid private mortgage insurance (PMI) instead and then a year later we buy a second home to live in, again with 5% down payment and lender-paid PMI. We convert the first one to a rental property. We repeat this process waiting at least a year between each purchase to comply with the owner-occupant lender requirement to live in the property for … Read more

Sample Scenario 007 – Investing $100,000 in Stocks at 8.97%/yr and Earning and Spending $5,000/mo and Buy a Home To Live In with 5% Down Payment and 1 BRRR With Nothing Down

This is similar to Scenario 005 except in this Scenario we are buying 1 home to live in and 1 using the BRRR strategy. We buy a home to live in with 5% down payment and lender-paid private mortgage insurance (PMI). At the same time, we find a property that we can buy at a very large discount and purchase it with hard money. After a year of seasoning, we refinance the property with a rate and term refinance at a slightly higher rate than the 5% down owner occupant loan we got for our other purchase and leave no … Read more

Sample Scenario 006 – Investing $100,000 in Stocks at Fixed 8.97% per Year while Earning and Spending $5K per Month and Buy 10 Nomads™

This is similar to Scenario 005 except in this Scenario we are Nomading™ ten times. We buy a home to live in with 5% down payment and lender-paid private mortgage insurance (PMI) instead and then a year later we buy a second home to live in, again with 5% down payment and lender-paid PMI. We convert the first one to a rental property. We repeat this process waiting at least a year between each purchase to comply with the owner-occupant lender requirement to live in the property for at least a year. If we have less than $10,000 in reserves … Read more

Sample Scenario 005 – Investing $100,000 in Stocks at Fixed 8.97% per Year while Earning and Spending $5K per Month and Buy 2 Nomads™

This is similar to Scenario 004 except in this Scenario we are Nomading™ twice. We buy a home to live in with 5% down payment and lender-paid private mortgage insurance (PMI) instead and then a year later we buy a second home to live in, again with 5% down payment and lender-paid PMI. We convert the first one to a rental property. I will be adding to this page in a future revision, but wanted to get it posted for you now as I prepare additional Scenarios for upcoming classes I am teaching. Scenarios with Fixed Rate of Return on … Read more

Sample Scenario 004 – Investing $100,000 in Stocks at Fixed 8.97% per Year while Earning and Spending $5K per Month and Buy a Home To Live In with 5% Down Payment

This is similar to Scenario 002 except in this Scenario we are buying a home to live in with 5% down payment and lender-paid private mortgage insurance (PMI) instead of renting. I will be adding to this page in a future revision, but wanted to get it posted for you now as I prepare additional Scenarios for upcoming classes I am teaching. Scenarios with Fixed Rate of Return on Stocks Scenarios Starting With $100K Scenarios With Income and Expenses Scenarios With Lender-Paid Private Mortgage Insurance Scenarios With Stocks and Real Estate