Ultimate Guides

Learn what you need to know to find success in real estate investing! Here, the Real Estate Financial Planner™ team has collected all our Ultimate Guides so you can explore everything from investment strategies to financing to rental properties. Dive into the topics that have been holding you back so you can make informed choices, take action, and make your real estate investment goal into a reality.

Cash Flow

Ep 5 - Andrea - Total Cash Flow - Inflation Adjusted

What is cash flow for rental properties? Why is it important? How is it calculated? And cash flow reports for your investments. That’s what we’ll cover here. First, what is cash flow for rental properties? Cash flow is the money generated from your rentals after you account for all the income from the property and subtract all the expenses for the property. Income from your property might include: Rent from properties Option fees on properties Additional mid-month payments Utility bill back Income from onsite amenities like laundry or internet Appliance rent IMPORTANT NOTE: We do not typically consider Cash Flow … Read more

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

Overcoming Hurdles to Real Estate Investing

I’ve broken this class up into 6 parts. Topics discussed include: Part 1 of 6: Introduction What’s preventing you from achieving your real estate goals? For this class, I break it down into 5 major categories Coming up with Down Payments (including closing costs and reserves) Overcoming Negative Cash Flow Qualifying for Loans Finding What’s Missing Inner Game Many of these topics have been their own 2-hour classes by themselves (and I’m sure I’ll revisit them in the future) Riddle of the farmer, chicken, bag of grain and fox: sometimes the solution to your challenges are not linear or obvious … Read more

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 … Read more

Real Estate Investing Shocks!

Topics discussed include: What are real estate investing shocks? Dan Sullivan says: If you’ve got enough money to solve the problem, you don’t have the problem. Maybe these shouldn’t be shocks… Your Shoe is Untied and How to Deal With Your Real Estate Investing Shocks Reverse Shocks – How Some Shocks Can Be Pleasant Surprises General Mitigation Principles for Dealing with Shocks The Importance of Reserves When Investing in Real Estate The Importance of a Wise Advisor to Guide You The Importance of Studying History for Real Estate Investors The Importance of Having a Backup Plan The Importance of Evaluating … Read more

Marketing to Find Off-Market Deals

Topics discussed include: How real estate investors find deals from The Millionaire Real Estate Investor book by Gary Keller et al Why Motivated Sellers? Creative Transactions and Fixer Upper Properties. Where are we in the Real Estate Investor Daily Checklist? 1-Step versus 2-Step Marketing The Importance of Being on the Right Side of the Desk Answering Service Questions and how to make an offer on the first call (to your answering service) How Much to Spend on Marketing Tests? Marketing Beliefs Sifting and Sorting to find the best deals Staying out of the Feast and Famine cycle Looking inside and … Read more

The Ultimate Guide to Real Estate Partnerships

Welcome, fellow real estate enthusiasts! If you’re on a quest to amplify your real estate game, partnering up might just be the rocket fuel you need. Let’s embark on a journey to uncover the secrets of successful real estate partnerships. Fasten your seatbelts; it’s going to be an exciting ride! Why Partner Up? Two Heads Are Better Than One: With a partner, you get to pool resources, share risks, and double your creative brainstorming power. It’s like having a real estate buddy who’s as invested in your success as you are in theirs. Access More Capital: More capital means more … 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