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/spreadsheet

Improve 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 Las Vegas 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/spreadsheet

Improve 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 Las Vegas 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/spreadsheet

Improve 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 Las Vegas 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/spreadsheet

Improve 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 Las Vegas 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 Las Vegas, Nevada:

Deal Analysis and Modeling for Las Vegas

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/spreadsheet

Improve 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 Las Vegas 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/spreadsheet

Improve 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 Las Vegas 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 Las Vegas specific, detailed analysis of a variety of strategies here:

https://RealEstateFinancialPlanner.com/model/NV/Las_Vegas/

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/spreadsheet

Improve 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 Las Vegas 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/spreadsheet

Improve 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 Las Vegas real estate investor podcast? Book a free consultation to discuss.