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.

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

An Alternative to Cash Flow – Saving Money With Rental Properties

Never buy rental properties with negative cash flow. Or, so the advice goes. But what if you find yourself in a real estate market that is near impossible to find a property with positive cash flow? In this special, one-time only class, James talks about an alternative to cash flow by using your rental properties… even ones with negative cash flow… as a means to save money. This two-hour class was recorded on March 31, 2021. Premise of the Class Cash flow is important. Some folks may argue that investing in real estate for anything other than cash flow is … Read more

Wait! Before You Make That Offer…

In this special, first-time-ever class, James shares the two-hour version of the stuff he wishes he could share with every client that is about to make an offer on a property. This class was taught on March 24, 2021. Premise of the Class If I could have the following two-hour conversation* with everyone right before they make an offer: that would be ideal. *Plus, the reference materials/classes. Here’s the library of real estate investor classes by year (for those that don’t know). Resale versus New Construction I am primarily referring to buying a resale property. New construction has its own … Read more

Pros and Cons of Every Real Estate Investing Strategy Compared

Are you considering investing in real estate? What strategy are you considering? How does that compare to all your other options? Let’s dive into the pros and cons of every real estate investing strategy… compared in this special one-time-only class taught by James on February 10, 2021. Before I share with you the outline of the class, I want to mention that I could have opted to do either a qualitative comparison or a quantitative comparison of each strategy. I ultimately chose to do a qualitative comparison for this class. Perhaps I’ll do a quantitative class in the future. Real … Read more

Go to College or Skip It to Invest in Real Estate

College or real estate investing? That’s a great question. What if you earn $30,000 more per year after you get your degree than the person who doesn’t go to college and you decide to invest the full $30,000 per year extra? We tackle the age-old question: Go to College or Skip It to Invest in Real Estate in this special class by James. This class was taught on January 13, 2021 via webinar. Tammy had sent over an article, Is This The End of College As We Know It, and James decided to do some math to see if the … Read more

Rental Property Tax Deductions

I’m not sure how a guy who doesn’t even do his own taxes ended up presenting an entire class on rental property tax deductions, but that’s exactly what happened. This class was taught on January 6, 2021 by James and IRS Enrolled Agent, Jassen Bowman via webinar. Here are the rental property tax deductions covered: Above the line versus below the line and a discussion of standard deduction versus itemizing your deductions The tax free sale of a primary residence including how this often confusing for new Nomads™, the 2 out of 5 year rule and more. House hacking and … Read more