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Omaha Real Estate Investing & Real Estate Financial Planning™ Podcast
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Omaha Real Estate Investing & Real Estate Financial Planning™ Podcast

Author: James Orr

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Learn all about investing in real estate in Omaha, Nebraska with a combination of real estate financial planning and modeling with numbers specific to Omaha plus syndicated, more generalized recordings of live and pre-recorded real estate investing classes (not all specific to Omaha).
110 Episodes
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So, you're considering Nomading™. Excellent! But as you dig into the details, you may wonder what the impact would be if you chose to buy a more desirable, higher quality, but maybe less optimal property at full price (without a discount), versus focusing on finding a slightly less desirable, slightly lower quality, but slightly more optimized rental property that you can buy at a 5% discount. How will that impact your speed to financial independence? How will that impact your net worth? Find out in this special comparison class, where James compares traditional Nomad™ to Nomading™ by buying properties at a 5% discount in over 300 US cities. Check out the video and interactive charts from this class here: https://RealEstateFinancialPlanner.com/model/nomad-vs-5-discount/ Or, see Omaha specific, detailed analysis of a variety of strategies here: https://RealEstateFinancialPlanner.com/model/NE/Omaha/ Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Omaha real estate investor podcast? Book a free consultation to discuss.
Deal Alchemy™ - Black Box Cash Flow Deal Alchemy™ is all about manipulating returns to get the returns you desire most. One variation of Deal Alchemy™ has you think about your rental property investment as a black box. You put money into the black box, some magical things happen over the next few years and out pops profit which you can spend like cash flow. That's what James will cover in this mini-class. In this class, James discusses: The definition of alchemy What is Deal Alchemy™ How to manipulate returns and move them between quadrants An example of thinking of your rental property investment as a black box with lumpy cash flow Plus much more... Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Omaha real estate investor podcast? Book a free consultation to discuss.
Warning - Risks of Rental Demand Declining When Investing in Real Estate Risk, risk, risk... Life is full of risks. To a limited degree, we get to choose which risks we voluntarily take on. For example, if you choose to invest in real estate, you choose to take on some additional risks that you might not—directly—face if you opt to invest in something else with its own set of risks. One risk when investing in real estate is the risk that the property you buy as a rental experiences a decline in rental demand, which often leads to a reduction in the rent you are getting. What are some things we can do to eliminate or mitigate this risk in advance of seeing possible rental market demand declining, and what are some things we can do after demand softens? That’s what James will cover in this mini-class. In this class, James discusses: A George S Patton quote about fear, risks and making decisions. More/Less speculative returns and why cash flow is more speculative than most people believe Buying properties that have mass appeal Buying better quality properties Modifying Warren Buffett's quote: Buying wonderful properties at fair prices versus buying fair properties at wonderful prices. Two opposing thoughts: discount for protection or quality to avoid selling Lower rent, hold on and absorb lower income Reserves and cumulative negative cash flow Change use Improve cash flow Sell Give property back Refi and/or recast Bring in partner Plus much more... Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Omaha real estate investor podcast? Book a free consultation to discuss.
Private Mortgage Insurance Myths Reputation can be a challenging thing. I have found, through many conversations with clients over the years, that Private Mortgage Insurance (PMI) has a questionable reputation with home buyers in general and investors in particular. However, much of its reputation is based on half-truths, bad information, lies, and myths. In this special class, James will discuss some of the more common myths about PMI and the truth about what PMI is, and why its reputation is misguided and/or misunderstood. In this class, James discusses: What is Private Mortgage Insurance (PMI) and why does it exist? The following myths: PMI is always required for down payments less than 20%. PMI is permanent and can never be removed. PMI is the same as homeowner's insurance. PMI protects the homeowner, not the lender. PMI is tax-deductible. PMI protects the borrower in case of job loss or disability. PMI is the same for all borrowers and loans. PMI premiums are fixed for the life of the loan. PMI is always monthly, always paid as a lump sum at closing, and/or always paid by the lender in exchange for a higher interest rate. PMI rates are set by the government. PMI is required for all types of loans. PMI is only required for first-time homebuyers. PMI is only required for single-family homes. PMI is only required by big banks. PMI is always cheaper than a second mortgage. PMI pays off my house if I die with a mortgage. PMI increases the monthly mortgage payment. PMI is a waste of money. Refinancing is the only way to get rid of PMI. Lenders benefit from PMI. PMI covers the full mortgage amount. You should always pay PMI Monthly. You should always pay PMI in a single up-front, lump-sum payment. You should always take a higher interest rate and have the lender pay PMI. Plus much more... Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Omaha real estate investor podcast? Book a free consultation to discuss.
Warning - Risks of Neighborhood Decline When Investing in Real Estate Everything in life has risks. Not investing adds certain types of risks, while investing adds other risks. One risk that some real estate investors face is the possibility that the neighborhood they're investing in will decline, causing values and/or rents to drop. So, how do we prevent this, and what can we do about it if it happens to us? In this mini-class addressing the dangers and risks of investing in real estate, James discusses the risk of a decline in the neighborhood you're investing in and what to do to mitigate the risk and address it should it happen. In this class, James discusses: A George S Patton quote about fear, risks and making decisions. Neighborhoods declining in value, rents, overall quality and desirability How to avoid investing in declining neighborhoods Watching market conditions and early, leading indicators Investing without ownership Investing without long-term ownership Investing for quality versus discount Holding on through a decline (and likely eventual turn around) Selling Give the property back Plus much more... Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Omaha real estate investor podcast? Book a free consultation to discuss.
How to Analyze a Duplex Some real estate investors are sensitive to their ability to get ten 30-year fixed rate financing loans and would prefer to fill those loan spots with larger purchases than just single family rental homes. One way to do that is to buy more expensive properties like duplexes, triplexes or fourplexes. In this class, James will walk you through how to analyze a duplex using The World’s Greatest Real Estate Deal Analysis Spreadsheet™. Or, check out the deal analysis example for Omaha, Nebraska: Deal Analysis and Modeling for Omaha Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Omaha real estate investor podcast? Book a free consultation to discuss.
How to Calculate PMI If you're a house hacker, Nomad™, investor buying properties with less than 20% down, or buying creatively where the seller has PMI, you'll want to make sure you know how to analyze deals that have Private Mortgage Insurance. In this mini-class, James will cover how to analyze deals that have PMI, with an emphasis on doing it using The World's Greatest Real Estate Deal Analysis Spreadsheet™. In this class, James discusses: What is Private Mortgage Insurance (PMI) and why does it exist? How to anaylze deals with a single up-front, lup-sum PMI payment How to anaylze deals with lender-paid PMI where the interest rate is higher How to anaylze deals with monthly paid PMI How to analyze deals with PMI on FHA loans Plus much more... Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Omaha real estate investor podcast? Book a free consultation to discuss.
In many cases—not all, but many cases—real estate investors can speed up the time it takes to become financially independent by choosing to pay off the mortgages on their properties early. Sometimes it makes sense to take every extra dollar beyond a healthy amount of reserves and aggressively pay off properties as quickly as possible. Other times, it might be better to invest money that you have earmarked to pay off properties in something else—like the stock market, for example—until you have enough to completely pay off the mortgage in one single large payment. In this mini-comparison class, we will look at the difference between these two different approaches: paying off properties with extra cash flow or only paying in full when Nomading™ over 300 US cities. Which one gets you to financial independence faster? Which one gives you a higher net worth? Which one is less risky? Find out in this class. Check out the video and interactive charts from this class here: https://RealEstateFinancialPlanner.com/model/pay-off-early-with-cash-flow-or-in-full-only/ Or, see Omaha specific, detailed analysis of a variety of strategies here: https://RealEstateFinancialPlanner.com/model/NE/Omaha/ Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Omaha real estate investor podcast? Book a free consultation to discuss.
Deal Alchemy™ - Residential vs Commercial Property Deal Alchemy™ is all about manipulating the returns you're earning on your investments. Often, this is done through the choices we make when selecting the investment property and the strategies we choose to implement. For example, you could choose to invest in residential properties where your tenants would live in the property. Alternatively, you could choose to invest in commercial properties where your tenants do not live in the property. Often, these investments would have different numbers and characteristics, such as who pays taxes, insurance, and maintenance on the property. However, for the sake of today's mini-class, we will look at just the difference in the tax benefits of depreciation in two identical investments, except one is residential and the other is commercial, to see how that impacts your overall returns. In this class, James discusses: The definition of alchemy What is Deal Alchemy™ How to manipulate returns and move them between quadrants An example by purchasing a commercial property with 39-year depreciation schedule instead of a residential property with a 27.5-year depreciation schedule Plus much more... Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Omaha real estate investor podcast? Book a free consultation to discuss.
Warning - Risks of Loan Called Due When Investing in Real Estate Investing in real estate adds some risk to an already risk-filled life. However, certain activities and strategies when investing in real estate create additional risks that other strategies and activities do not have. For example, choosing to utilize strategies where the lender has the right to call a loan due—like many types of creative financing, using home equity lines of credit, and many commercial loans—adds the additional risk of possibly having loans on your properties called due and payable in full. Add in the fact that these often coincide with the most extreme market conditions, and it can be a recipe for disaster for you as a real estate investor... a perfect storm of sorts... extreme market conditions where refinancing or selling can be near impossible or at least impractical, and the lender forcing you to do just that very thing at the same time. In this mini-class, James will discuss the risk of loans being called due, what we can do about it, and how to mitigate or eliminate that risk completely. In this class, James discusses: A George S Patton quote about fear, risks and making decisions. When are loans called due? Balloons on mortgages Breach of agreement on mortgages Buying properties subject-to the existing financing, lease-options, and lease-purchases Lender's option to terminate loan agreement The perfect storm: extreme market conditions and lenders calling loans due How to avoid having a loan called due Options when a loan is called due Plus much more... Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Omaha real estate investor podcast? Book a free consultation to discuss.
How to Analyze Buying a Rental Property at a Discount in Omaha Some real estate investors insist on only buying properties where they can purchase them at a significant discount. While not mutually exclusive, other investors insist on buying quality properties at a fair price as long as it gets them their desired returns and will stand the test of time. Buffett began as a deep value investor and eventually shifted his focus towards investing in high-quality companies. “It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price,” Buffett confidently stated that his investing has evolved significantly. But, in today's mini-class, let's look at how to analyze buying a fair property at a wonderful price... in other words... analyzing a property using The World's Greatest Real Estate Deal Analysis Spreadsheet™ that you bought at a deep discount and required some money to capture some sweat-equity, but that you're planning to keep as a long-term rental. Or, check out the deal analysis example for Omaha, Nebraska: Deal Analysis for Omaha Buying at a Discount Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Omaha real estate investor podcast? Book a free consultation to discuss.
How to Calculate PMI

How to Calculate PMI

2024-03-2913:28

How to Calculate PMI If you're planning to buy a property and put less than 20% down, you're likely to be required to pay Private Mortgage Insurance. Lenders prefer that you put at least 20% down, but if you insist on putting less than 20% down, they may still make the loan. However, they will usually do so at a slightly higher mortgage interest rate for taking on more risk and require that you pay a third party to insure them in case you default. This insurance you pay to the third party is called Private Mortgage Insurance. But how much is it? The easiest way to find out is to call your lender and have them calculate it for you. But, if you insist on calculating it yourself—or you prefer to know some of the factors involved in how to lower the cost of private mortgage insurance for yourself—in this mini-class, James will walk you through how to do the calculation yourself. In this class, James discusses: What is Private Mortgage Insurance (PMI) and why does it exist? The best way to get your PMI amount is to call your lender How to calculate PMI using a PMI rate sheet The factors that impact your PMI Plus much more... Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Omaha real estate investor podcast? Book a free consultation to discuss.
There are a large number of investing strategies you could pursue as a real estate investor: Nomad™, house hacking, fix and flip, buying 20% down rentals, buying 25% down rentals, saving up to buy free and clear rentals and many, many more options. Which is the best? Which gets you to financial independence fastest? Which gives you the highest net worth? Which gives you the highest standard of living in retirement? Which has the lowest amount of risk? Which should you pursue and implement? These are some difficult questions. But, in this mini-class James will compare saving up to buy 20% down rental properties to saving up even longer to buy free and clear rental properties. In both cases, the investor will first buy an owner-occupant property with 5% down to live in instead of renting themselves. We’ll look at how each strategy performs in over 300 US cities and you’ll get answers to many of the questions we posed above comparing these two strategies. Check out the video and interactive charts from this class here: https://RealEstateFinancialPlanner.com/model/20-down-vs-all-cash-with-oo/ Or, see Omaha specific, detailed analysis of a variety of strategies here: https://RealEstateFinancialPlanner.com/model/NE/Omaha/ Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Omaha real estate investor podcast? Book a free consultation to discuss.
Deal Alchemy™ - Increasing Down Payment There are four primary returns from investing in rental properties: appreciation, cash flow, debt paydown, and the tax benefits of depreciation. Additionally, there is a secondary return in the form of the interest earned on the reserves required to make the investment in the first place. Many real estate investors prefer the cash flow return over the others. Often, we can manipulate the investment to shift returns between appreciation, cash flow, debt paydown, tax benefits, and reserves. We call this Deal Alchemy™. There are many variations of Deal Alchemy™, but in this mini-class, James will guide you through the process of shifting your return to cash flow by changing the down payment amount. In this class, James discusses: The definition of alchemy What is Deal Alchemy™ How to manipulate returns and move them between quadrants An example by increasing the down payment size from 20% down to 25% down and how that impacts your returns... in both dollars and on your overall investment Plus much more... Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Omaha real estate investor podcast? Book a free consultation to discuss.
Warning - Risks of Rental Property Expenses When Investing in Real Estate Risk is all around us. When we choose to invest in anything, we’re choosing to take on the additional risk characteristics of that investment. For example, when we choose to invest in real estate, we choose to take on the risk characteristics of the specific real estate investing we opt to do minus the risk mitigation and elimination strategies we put in place. One of the risks of investing in real estate is the risk of rental property expenses increasing. James discusses those risks and how to mitigate or eliminate them in this mini-class. Check out the video from this class here: Warning - Risks of Rental Property Expenses When Investing in Real Estate - Video In this class, James discusses: A George S Patton quote about fear, risks and making decisions. An introduction to Rent Resiliency™, Price Resiliency™, Vacancy Resiliency™, Property Insurance Resiliency™, Maintenance Resiliency™, HOA Resiliency™, Utilities Resiliency™, Capital Expenses Resiliency™, Property Management Resiliency™ and Property Taxes Resiliency™ Eliminating some risk by using fixed rate financing options How increasing expenses don't mean 1:1 reduction in cash flow Options when Property Taxes get too high? Options when Insurance gets too high? Options when Principal and Interest change? Options when Interest Rates rise? Plus much more... Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Omaha real estate investor podcast? Book a free consultation to discuss.
How to Analyze a New Construction Single-Family Home Property in Omaha Your ability to analyze deals is arguably the most important skill as a real estate investor. It allows you to make smart investment decisions and helps you avoid making career-ending bad decisions, such as buying cash-flowing-sucking vampire properties. In this class, James will help you utilize The World's Greatest Real Estate Deal Analysis Spreadsheet™ (a free download) to analyze a new construction single-family home that you plan to buy as an investment. Analyzing new construction is slightly different from analyzing resale properties, and James will cover these differences in this deal analysis class. Check out the video from this class here: How to Analyze a New Construction Single-Family Home Property - Video Or, check out the deal analysis example for Omaha, Nebraska: Deal Analysis for Omaha 5% Down Single-Family Home Nomad™ Property Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Omaha real estate investor podcast? Book a free consultation to discuss.
The 3 Strategies to Pay Private Mortgage Insurance (PMI) Whether they're putting 15% down and buying a non-owner-occupied property or utilizing an owner-occupied loan with 0%, 3%, 3.5%, or 5% down for Nomading™ or house hacking, some real estate investors will choose to put less than 20% down. With the decision to put less than 20% down comes the choice of how to pay for private mortgage insurance (PMI). There are three options (plus some combinations of the three options): up-front lump sum, lender-paid, and monthly. And, as you might have guessed, there are pros and cons to each option. In this mini-class, James will cover the three options and go over the pros and cons of each. Check out the video from this class here: The 3 Strategies to Pay Private Mortgage Insurance - Video In this class, James discusses: What is Private Mortgage Insurance (PMI) and why does it exist? Paying PMI with a single, upfront, lump-sum payment Voluntarily increasing your mortgage interest rate and having the lender pay for PMI Paying PMI monthly The pros and cons of utilizing each strategy Plus much more... Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Omaha real estate investor podcast? Book a free consultation to discuss.
Investing in real estate is full of truthy-sounding falsehoods: it is always better to do X than Y. However, if you were crazy enough to sit down and do the math, you'd find the truth to be much more nuanced. For example, should you take all your extra cash flow and savings and apply it to your mortgages each month to pay off rental properties faster? And if you do, is that a faster path to financial independence? Does it result in your having a higher overall net worth? A higher overall standard of living in retirement? Is it less risky to do that? That's what we will discuss in this special comparison class. I have analyzed over 300 US markets for someone utilizing the Nomad™ real estate investing strategy in two flavors. In one group, they do the traditional Nomad™ model and do not pay anything extra to pay off their mortgages early. In the other group, they do Nomad™ but they apply extra cash flow toward paying off their properties early. Which group performs better in the metrics we outlined above? Is it universally better? Or is it market-dependent? Find out in this mini-class. Check out the video and interactive charts from this class here: https://RealEstateFinancialPlanner.com/model/nomad-or-pay-off-early-with-cash-flow/ Or, see Omaha specific, detailed analysis of a variety of strategies here: https://RealEstateFinancialPlanner.com/model/NE/Omaha/ Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Omaha real estate investor podcast? Book a free consultation to discuss.
Deal Alchemy™ - Cash Flow to Debt Paydown There are four primary returns from investing in rental properties: appreciation, cash flow, debt paydown, and the tax benefits of depreciation. Additionally, there is a secondary return in the form of the interest earned on the reserves required to make the investment in the first place. Many real estate investors prefer the cash flow return over the others. Often, we can manipulate the investment to shift returns between appreciation, cash flow, debt paydown, tax benefits, and reserves. We call this Deal Alchemy™. There are many variations of Deal Alchemy™, but in this mini-class, James will guide you through the process of shifting your return from cash flow to debt paydown, resulting in a higher overall return. Check out the video from this class here: Deal Alchemy™ - Cash Flow to Debt Paydown - Video In this class, James discusses: The definition of alchemy What is Deal Alchemy™ How to manipulate returns and move them between quadrants An example of utilizing a 15-year mortgage instead of a 30-year mortgage to change the return to debt paydown Plus much more... Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Omaha real estate investor podcast? Book a free consultation to discuss.
Warning - The Risk of Down Payment Size When Investing in Real Estate Life is full of risks. When we choose to invest, we choose to take on additional risks. If we invest in stocks, we choose to take on certain risks. When we choose to invest in bonds, we take on different risks. When we choose to invest in real estate, we choose to take on additional and different risks. One of the risks associated with real estate investing is the risk of down payment size. If you put a large amount down—or even choose to pay cash and put 100% down—you have certain risks. If you choose to put a small amount down—or even nothing down—you have other risks. These risks change with the amount you put down. In this mini-class, James will look at the risks associated with the amount you put down when investing in real estate. Check out the video from this class here: Warning - The Risk of Down Payment Size When Investing in Real Estate - Video In this class, James discusses: A George S Patton quote about fear, risks and making decisions. The Risk Matrix and The Risk Matrix for property appreciation (and property declines) An introduction to Rent Resiliency™ and Price Resiliency™ Case-Shiller Home Price Index - Home Price Appreciation Over Previous 12 Months A Case-Shiller chart showing mortgage interest rates, population, real building costs and home prices over the last 133 years Year-Over-Year Home Price Appreciation over the last 133 years and the frequency of price declines (and price increases) What are you risking? Plus much more... Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis Spreadsheet™ by going to:https://RealEstateFinancialPlanner.com/spreadsheetImprove Cash Flow: Book a consultation to improve cash flow using our proprietary 88 cash flow improving strategies.Real Estate Agent & Lender Collaborators: Interested in collaborating with us on the Omaha real estate investor podcast? Book a free consultation to discuss.
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