Arlington Real Estate Investing & Real Estate Financial Planning™ Podcast

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 SpreadsheetTM 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 Arlington real estate investor podcast? Book a free consultation to discuss.

Learn the secrets of house hacking in Arlington.

This class is Module 15 of 46 in a series called Real Estate Investing Secrets.

Topics covered in this module include:

• What are the different variations of the house hacking real estate investing strategy and what are some of the pros and cons of each.
• What are the most common ways to finance house hacking real estate investments? And what are some of the more unusual ways?
• Is the house hacking real estate investing typically an active or passive investment?
• How long do you typically hold house hacking real estate investments? And, why might you change that?
• How do you typically exit a house hacking real estate investment? How does your buyer typically finance the purchase when they buy from you?
• Is the house hacking real estate investing typically for real estate investors or real estate entrepreneurs... and what’s the difference?
• How much money is typically required to invest utilizing the house hacking real estate investing strategy? What are some of the less common money requirements?
• What credit is required to utilize the house hacking real estate investing strategy? And, what are some less common credit-related requirements?
• What are the 4 primary skills required for house hacking real estate investors? And, how does one of those skills vary depending which strategy you’re utilizing.
• Is the house hacking real estate investing actively or passively stable? And, what does that means in terms of the entire business blowing up in your face?
• How scalable is the house hacking real estate investing strategy?
• What is your risk exposure with the house hacking real estate investing strategy? What are some of your risks? How does that increase with certain sub-strategies?
• How quickly do you make money with house hacking? What amount of money do you make at that interval?
• How does one typically find deals as a house hacking real estate investor? What are some of the more unusual ways to find deals?
• What do you use to analyze house hacking real estate investments and where to get a copy of the spreadsheet you need... for free?
• What are the ideal market conditions for the house hacking real estate investing strategy and what is a challenging market to utilize this strategy in?
• How accessible or available are viable house hacking real estate deals?
• Can you utilize your retirement money to invest in house hacking real estate investments?
• Plus much more...

Check out the video and additional resources related to Secrets to House Hacking .

Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis SpreadsheetTM 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 Arlington real estate investor podcast? Book a free consultation to discuss.

Tax Deductibility of PMI Payments

Are you an owner-occupant puzzled by the ever-changing rules around PMI (Private Mortgage Insurance) deductibility? Or perhaps an ambitious real estate investor, hungry to maximize your deductions and supercharge your profits? Then this class is your golden ticket to the world of tax wisdom!

Join us for an exhilarating journey through the labyrinth of PMI tax laws, where we'll explore:

• Two Distinct Worlds: Owner-occupant properties and investment/rental properties. What's the difference, and why should you care? We'll tease you with the answers!
• The Owner-Occupant Odyssey: Living in the property? You might think PMI is no longer deductible for you, but is that the whole truth? And what's this about NomadsTM?
• Investor's Paradise: House Hackers, Rental Property Business owners, and more! Discover the secrets that could make PMI an exciting part of your financial strategy. No income limitations? Intrigued?
• The Grand Conclusion: We'll tie it all together, leaving you with tantalizing insights and a thirst for more. Whether you're an owner-occupant or an investor, we'll reveal just enough to make you crave the full story.

This class is more than just a tax lesson; it's a thrilling adventure, a treasure hunt, and a financial empowerment session all rolled into one! Whether you're a seasoned pro or just dipping your toes into the real estate waters, we've got surprises and insights that will leave you hungry for more.

So grab your financial compass and join us on this thrilling expedition. The path to PMI tax wisdom awaits, and it's a journey you won't want to miss!

In this class, James discusses:

• What is Private Mortgage Insurance (PMI)?
• Is PMI deductible for home-owners?
• Is PMI deductible for NomadsTM?
• Is PMI deductible for house hackers?
• Can you eve have PMI as a real estate investor?
• Is PMI deductible for real estate investors?
• 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 SpreadsheetTM 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 Arlington real estate investor podcast? Book a free consultation to discuss.

Deal AlchemyTM - Residential vs Commercial Property

Deal AlchemyTM 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 AlchemyTM
• 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 SpreadsheetTM 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 Arlington real estate investor podcast? Book a free consultation to discuss.

Learning how to correctly manage properties is a critical skill for landlords.

This class is Module 5 of 46 in a series called Real Estate Investing Secrets.

Topics covered in this module include:

• What should you be doing to document the condition of the property before the next tenant takes possession?
• The one free thing that few landlords do that could save you thousands of dollars from an unscrupulous tenant.
• What is the risk-reduction significance of having matching photos of before and after?
• What reminders should you be sending the incoming tenant before they start renting your property?
• What is the best practice for how do you deal with a tenant moving in mid-month?
• What’s the one critically important thing we must do with the security deposit and first month’s rent we collect from the tenant?
• What day should the new tenant’s utilities start?
• What else do we give tenants prior to moving in that we expect them to have done prior to move-in?
• A little management trick you can use that gives us a break the morning the tenant’s moving in.
• What should you lease say about the move-in inspection form to significantly reduce your risk?
• What does a move-in inspection form look like? And, what should it say?
• What obligations does the tenant have to you... as the landlord the first week moving into the property? What do you do if they fail to provide it to you after 5 days?
• How do we address pest control issues with a property a tenant has just moved into?
• What’s one thing we insist tenants do in the lease and require they provide proof of when they move in?
• What should you be doing for the tenant in the first month? And, why do some landlords prefer to do this every month?
• What’s one little reminder for the tenant that can save you thousands in repair costs?
• When should you inspect a property? How do you deal with lease violations if you discover them?
• What should you be doing 90-120 days prior to the current lease expiration date?
• How do you differentiate between renewal rent rates and fair market rents? And, how do you deal with this discrepancy?
• What should you be doing 60-90 days prior to the current lease expiration date?
• See an example of a lease extension, why I personally recommend not using one and what to do instead.
• What do you do if the current tenant is not renewing their lease?
• An example of a move-out checklist? What should you include in yours?
• What should be the very first thing you do when taking possession of the property from a tenant at the end of their lease?
• What must you do to avoid having to pay a tenant 3 times their security deposit?
• What should you have in every tenant file?
• Plus much more...

Check out the video and additional resources related to Secrets of Property Management.

Free Real Estate Deal Analysis Spreadsheet: Download a copy of the newest version of The World's Greatest Real Estate Deal Analysis SpreadsheetTM 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 Arlington real estate investor podcast? Book a free consultation to discuss.