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