The Ultimate Guide to Cash on Cash Return on Investment

Welcome to the Ultimate Guide to Cash on Cash Return on Investment for real estate investors (also known as “Cash on Cash ROI”). In this guide, we will start by discussing what the basic definition of cash on cash return on investment is and then move on to much more advanced and nuanced topics related to cash on cash. Cash on Cash Return on Investment = (Net Operating Income – Mortgage Payments) ÷ Purchase Price Cash on Cash Return on Investment is defined as the Net Operating Income (often abbreviated as NOI) minus all Mortgage Payments divided by the Purchase … Read more

The Ultimate Guide to Cap Rate for Real Estate Investors

Welcome to the Ultimate Guide to Cap Rate for Real Estate Investors (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 and nuanced 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. What’s a Good Cap Rate for Real Estate Investors? Cap … Read more

Are FHA Loans for Suckers?

In this class James discusses the pros and cons of using FHA loans. Are FHA Loans For Suckers? Their equivalent of Private Mortgage Insurance (PMI)–Mortgage Insurance Premium for FHA loans—is usually higher compared to PMI on conventional loans Their Private Mortgage Insurance never goes away You got to sell or refinance into a different loan to get rid of it Mortgage Interest Rates can be higher than for jumbo loans or VA loans There are lower down payment programs than just 3.5% down like conventional 3% down payment, VA and USDA nothing down loan programs as just a couple examples … Read more

Mortgage Interest Rate Confidence Meter™

Mortgage Interest Rate Confidence Meter™

Thinking about buying properties over the next several years? Are you wondering what a reasonable mortgage interest rate to use should be? Download and use the Mortgage Interest Rate Confidence Meter™ to see how reasonable your mortgage interest rate is using historical 30-year mortgage interest rate data from the Federal Reserve’s database of historical 30-year mortgage interest rate data going back to 1971. Download

The Lifestyle of Success Secret

Lifestyle of Success Secret

So far, we’ve already discussed how to fail, how to be ordinary and how to be successful in the previous 3 parts: The Lifestyle of Failure The Lifestyle of Ordinary The Lifestyle of Success The Lifestyle of Success Secret (illustrated below) Now, let’s examine The Lifestyle of Success Secret to see how financially successful folks deal with their Daily Standard of Living and their Overall Standard of Living. Same set as previous parts: money measured on the left and time measured on the bottom. Money increases from bottom to top. Time increases from left to right. The money they earn … Read more

The Lifestyle of Success

Lifestyle of Success

We’ve covered The Lifestyle of Failure and The Lifestyle of Ordinary. Now, we will move on to part 3 in our series on examining how folks handle their money and how it impacts their financial security by talking about The Lifestyle of Success. The Lifestyle of Failure The Lifestyle of Ordinary The Lifestyle of Success (illustrated below) The Lifestyle of Success Secret In the The Lifestyle of Failure, we saw people living beyond their means and using debt that led, ultimately, to bankruptcy. In the The Lifestyle of Ordinary, we saw people living below their means and investing but spending … Read more