The Real Estate Financial Planner™ Blog

Welcome to the thrilling world of Real Estate Financial Planning! If you’re on the hunt for savvy investment strategies, transformative financial insights, and the ultimate guide to building wealth through real estate, you’ve just hit the jackpot. Whether you’re a seasoned investor or just dipping your toes into the vast ocean of real estate opportunities, our blog is your new go-to resource.

Why real estate, you ask? Simple. It’s one of the most powerful vehicles for generating long-term wealth and achieving financial freedom. And who doesn’t dream of that? But here’s the kicker: navigating this world can be as complex as it is rewarding. That’s where we come in. Our content is designed not only to enlighten you but also to inspire action and drive results.

Imagine unlocking the secrets to acquiring lucrative rental properties that pay for themselves and then some. Picture yourself living off passive income, where your investments work for you, not the other way around. It’s not just a dream; it’s a very achievable reality, and we’re here to show you how.

From deep dives into market analysis, investment strategies, and financial planning, to actionable tips on property management and scaling your portfolio, our blog covers it all. We believe in cutting through the noise to bring you straightforward, actionable advice that makes a difference.

But it’s not just about the “what” and the “how”; it’s also about the “who.” Meet James, a former real estate broker turned investment guru, who lives and breathes real estate. James has walked the walk, transforming his passion for real estate into a thriving portfolio of income-generating properties. Now, he’s here to share his wealth of knowledge, experiences, and insights with you.

Our mission is simple: to empower you with the knowledge and tools you need to make informed decisions, maximize your returns, and build a financial legacy through real estate. We’re here to guide you every step of the way, from your first investment property to your hundredth.

So, are you ready to embark on this exciting journey with us? Let’s dive in and explore the endless possibilities that real estate investing has to offer. Together, we’ll unlock the door to financial freedom and success. Welcome to the Real Estate Financial Planning blog, where your financial dreams are just a blog post away. Let the adventure begin!

Investing in Rental Properties

If you’re interested in learning how to invest in rental properties on your journey toward financial independence, then you’ve found the right place. Many folks seek rentals because they believe that they provide superior returns compared to other investments like stocks, bonds, notes and speculating in commodities and cryptocurrencies. The returns you can earn buying rentals break down into four component areas that we often discuss with the Return Quadrants™. Some folks have traditional described this using the acronym that real estate is the IDEAL investment. Where: I = Income D = Depreciation (tax benefits) E = Equity build-up A … Read more

Alternate Universe Modeling™

Alternate Universe Modeling™

Alternate Universe Modeling™ is our version of doing  Monte Carlo simulations for our  Scenarios. In the simplest terms you take a  Scenario you’ve created. For example, check out Andrea in Ep 1: Andrea Buys 8 Rentals with Down Payments for 2. That does NOT utilize Alternate Universe Modeling™ but we could add variability to: Yearly Rate of Return for money in  Accounts that are invested in the stock market Appreciation Rate for  Properties in the  Scenario Rent Appreciation Rate for  Properties in the  Scenario Mortgage Interest Rates for  Properties you might buy in the  Scenario Inflation Rate for the  Scenario … Read more

True Cash Flow™

Ep 5 - Andrea - Total True Cash Flow - Monte Carlo

You’ve heard of cash flow on rental properties. Basically, it is defined by taking all the income from your rentals minus all your expenses. Cash Flow = Income – Expenses But, have you heard about True Cash Flow™? True Cash Flow™ is your traditional cash flow plus Cash Flow from Depreciation™. True Cash Flow™ = Cash Flow + Cash Flow from Depreciation™ If you’re familiar with the Return Quadrants™, True Cash Flow™ is represented by the returns from these two sections: Post Depreciation Period Depreciation for a residential rental property typically lasts 27.5 years. Since True Cash Flow™ is really … Read more

Cash Flow from Depreciation™

Ep 1 - Andrea - Total ROE from Cash Flow from Depreciation™

Cash Flow from Depreciation™ is your gross depreciation for a property times your estimated tax rate. It gives you approximately how much money you expect to receive from a rental property in tax benefits. Because it is a variation of cash flow, we tend to think of it in terms of a monthly amount. Although, for the Return Quadrants™ we will present it as a yearly amount. For the Return Quadrants™, we show it in this section: Over Time Gross depreciation is established when you buy the property. For residential properties, it remains the same for 27.5 years. And, unless … Read more

Is Nomad™ Dead?!

In this special class, James Orr discusses whether the Nomad™ real estate investing strategy is dead. This class was taught on June 9, 2021. What Promoted This Class Several buyers purchasing from a specific neighborhood over the last several years All the same 4-bedroom model, same builder, go under contract well before close date (build time) April 2018, client purchased for $354K With about $10K in options… so about $344K for base price June 2019, client purchased for $360K With about $3K in options… so about $357K for base price About 3.77%/year increase (we typically model 3%/year) Rent was about … Read more

Real Estate Investor FIRE

Many dream of reaching a point where their financial resources allow them to retire early, enjoying life without the constraints of a 9-to-5 job. This dream, often referred to as Financial Independence, Retire Early (FIRE), can seem distant or unattainable to some. However, through astute real estate investing and strategic management of rental properties, achieving FIRE is more accessible than you might think. Here’s how. Understanding the Basics of FIRE FIRE is a lifestyle movement with the goal of financial independence and the ability to retire well before the traditional retirement age. This doesn’t necessarily mean leaving the workforce entirely … Read more

The ROI On A House Probably Isn’t As High As You Think – An Honest Talk

Real estate investing is often heralded as a surefire path to wealth, promising lucrative returns through appreciation, cash flow, depreciation benefits, debt paydown, and more. However, the reality is that the return on investment (ROI) on a house may not be as high as many investors initially believe. Let’s unpack the reasons why and set realistic expectations for those looking to dive into the world of real estate investments. 1. Appreciation Isn’t Guaranteed Many investors buy property with the assumption that its value will always go up. While historical data supports long-term appreciation, the real estate market is subject to … Read more

The Case AGAINST Investing in Real Estate

While real estate investing can be a lucrative path for some, it’s not without its pitfalls and drawbacks. In the spirit of playing devil’s advocate, let’s explore the reasons why investing in real estate might not be the golden opportunity it’s often touted as, and consider alternative investment avenues that could potentially offer better returns, less hassle, or both. 1. Capital Intensity Real estate requires a significant upfront investment, not only in terms of purchasing property but also in ongoing maintenance and upgrades. This high barrier to entry can be prohibitive for many potential investors, tying up large amounts of … Read more

Stress Testing Your Real Estate Investing Portfolio

Historically, using The World’s Greatest Real Estate Deal Analysis Spreadsheet™ most people use a static rent appreciation rate and price appreciation rate. In other words, when analyzing a deal they used 2 or 3% for rent appreciation. And, 2 to 3% for price appreciation. You could do some changes to these appreciation rates by using the rent OVERRIDE feature: And, you can do a similar thing with the price OVERRIDE feature lower on the spreadsheet: But the OVERRIDE feature… as good as it is… is limited in its ability to stress test a property and… unless you create an amalgamation … Read more

Ultimate Guide to Should I Sell My Rental Property?

It’s a question as old as real estate investing itself: should I sell my rental? In this brand new class, James will give you unparalleled insight into whether you should keep your rental or sell it. The Setup You’ve been acquiring properties over time. When you acquire properties, we’ve typically used Return on Investment (ROI) as a primary decision-making metric. Some investors will focus more on cash flow and use Cash on Cash Return on Investment (which is just the “Cash Flow” portion of my Return on Investment Quadrants™). Once you acquire the property, many folks switched over to thinking … Read more