Casper Real Estate Investing & Real Estate Financial Planning™ Podcast

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

How to Analyze an All-Cash Rental Property Purchase

Deal analysis is important. Learning how to analyze deals is a critical skill for all real estate investors, whether you're financing 100% of the purchase or buying a property without a loan at all and paying all cash.

In this class, we will look at how deal analysis changes when you plan to buy a property for all cash, without a mortgage, using The World's Greatest Real Estate Deal Analysis SpreadsheetTM.

Or, check out the deal analysis example for Casper, Wyoming:

Deal Analysis and Modeling for Casper

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

What does financially independent mean? Find out in this special, deep-dive podcast episode.

James defines financially independent:

• Passive Income from things like social security, pensions and annuities
• Net positive cash flow from rental properties
• Safe withdrawal rate times other invested assets like stocks and bonds

James discusses how you need to have clarity on what financial independence looks like for you... especially as a real estate investor... and then what you need to do to get there.

What you NEED to be financially independent is your ultimate destination. That's what your budget looks like when financially independent.

What you choose to invest in is the path to financial independence. That's your action plan.

James provides you with The Ultimate FIRE Budget so you can plan your budget now, when you're at lean FIRE and when you're at fat FIRE... and specifically what your sources of income are for being financially independent at each of those three stages.

James also discusses Warren Buffett's two list strategy as described by James Clear and how that applies to real estate investors seeking financial independence.

Bonus conversation about whether you should pay off your primary residence or not and how that has far reaching implications on other financial questions.

Watch the video version of this class:

https://realestatefinancialplanner.com/what-does-financially-independent-mean/

Resources Mentioned In Class

• The Ultimate FIRE Budget - Determine what your budget and investments look like now, when you're lean FIRE and when you've achieved fat FIRE with this free video and spreadsheet download.
• Casper, Wyoming Real Estate Modeling - Click on the link to copy any Scenario for Casper, Wyoming to have James walk you through any calculation including Cash on Cash Return on Investment for any property used in the modeling.

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

Real estate prices in Casper are high. Mortgage interest rates are high. Rents are lagging in Casper. Is real estate a good investment in Casper right now?

In this special webinar James discusses why you might still want to invest in real estate in Casper despite high prices, high interest rates, and lagging rents.

James will discuss why Charlie Munger says that the first $100K is the hardest. Plus, why its not ALWAYS just about cash flow with real estate investments and why you still might want to invest in real estate in Casper despite our current market conditions.

James has modeled just over 300 different US cities for this class for you to choose from, jump right to Casper:

https://RealEstateFinancialPlanner.com/model/WY/Casper/

Watch the video version of this class:

https://realestatefinancialplanner.com/why-you-still-might-want-to-invest-in-real-estate-despite-high-prices-high-interest-rates-and-lagging-rents/

Resources Mentioned In Class

• First $100K is the Hardest - Learn the surprising math behind why the first $100K is the hardest to acquire and what you should do about it.
• Return QuadrantsTM - Learn about all the different Return QuadrantsTM and how we use them to show you how a property is performing.
• Model - Select Casper, Wyoming and see the Baseline NomadTM Scenario, 20%/25% down, and buying properties for cash and how it performs in your city.

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