The Ultimate Guide to Low Ball Offers for Real Estate Investors

If you’re interested in learning more about low ball offers then you’ve found the right place with The Ultimate Guide to Low Ball Offers for Real Estate Investors. Wondering how to make an offer on a house as a real estate investor? Should make an offer lower than the price that is listed in the MLS? After you read this guide you will be better prepared to answer that question than 99.9% of all buyers ever. I can say this with confidence because I will be sharing with you real-world, hard data on low ball offers. Both data in aggregate … Read more

The Ultimate Guide to Gross Operating Income

Want to learn more about Gross Operating Income? Check out The Ultimate Guide to Gross Operating Income where we will start with the basics and dig into more advanced and nuanced discussions. Gross Operating Income = Gross Potential Income – Vacancy Gross Potential Income is the most you could possible receive on the rental property if you collected all the income generated on the property. It is defined as: Gross Potential Income = Rent + Other Income We define Vacancy as: Vacancy = Gross Potential Income × Vacancy Percentage I will be added to this with a future update: Show … Read more

The Ultimate Guide to Net Operating Income

If you’re looking to learn more about Net Operating Income (also abbreviated as NOI) then check out our Ultimate Guide to Net Operating Income. Net Operating Income = Gross Operating Income – Operating Expenses Our Gross Operating Income (often abbreviated GOI) is defined as: Gross Operating Income = Gross Potential Income – Vacancy Our Operating Expenses are defined as: Operating Expenses = Total of All Expenses (Excluding Debt/Mortgages and Capital Expenses) I will be adding to this page in the future: Show where NOI is located on spreadsheet and walk through the calculation of it using the spreadsheet and images … Read more

The Ultimate Guide to Cap Rate

Welcome to the Ultimate Guide to Cap Rate (also known as “capitalization rate”). In this guide, we will start by discussing what the basic definition of cap rate is and then move on to much more advanced topics related to cap rates. Cap Rate = Net Operating Income ÷ Purchase Price Cap rate is defined as the Net Operating Income (often abbreviated as NOI) divided by the Purchase Price. In The World’s Greatest Real Estate Deal Analysis Spreadsheet™ cap rate is calculated for you. In future updates I will also be adding additional sections on: Cap rate is the cash … Read more

The Penultimate Guide to Safe Withdrawal Rates

The following is The Penultimate Guide to Safe Withdrawal Rates. Why not the “ultimate” guide? Because Karsten Jeske with Early Retirement Now made the ultimate guide already (which you all should read and I link to below). Our guide is intended to be an addendum to the amazing work he’s already done and the second-to-last guide you’ll need in addition to Karsten’s. I will continue to update this over time as I discover more resources or have more to say about it from modeling done with the Real Estate Financial Planner™ software. In this guide, I will primarily do two … Read more