real estate investing in 10 minutes

Post on 17-Oct-2014

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For our 2013 team retreat at Modern Tribe, I gave a 10 minute talk on the basic principles of real estate investing. Why the pandas you might ask? MY daughter thinks they are cute. 'Nuf said.

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Basic strategies for the acquisition of long-term wealth with properties. REAL ESTATE INVESTING IN 10 MINUTES

1. WHERE DOES PROFIT COME FROM?

Cashflow  Is  

Getting cash monthly is great and it provides you the cushion to survive market turbulence.

KING

Most significant profits in real estate come from an increase in the value of the property.

APPRECIATION Hey  MSA,  you  look  mighty  fine  with  all  those  new  jobs.  

 ignore  the  panda  on  my  head,  

I’m  trapped  in  a  meme.  

Principal Paydown

Take advantage of tax law when you can, but never depend on it sticking around or it might hurt. #fightlikeapanda

DEPRECIATION

2. APPROACHES

Buy & rent. Collect a small check. Hold on and collect more checks. Pay off the loan, collect big checks.

BUY & HOLD

Remodel or Repurpose. Often, elbow grease & grey matter is all you need to increase property value.

CREATE EQUITY

Buy it, then turn right around and sell it. Higher Risk, Higher Reward.

FAST FLIP

Live in it for 2 years and it qualifies as a personal property. 500k profits tax free baby.

OWNER EXEMPT FLIP

Want to play, but short on cash? I know how you feel. Buddy up with partners.

SYNDICATION

3. ONE SPREADSHEET TO RULE THEM ALL

Net  OperaAng  

A fancy way to say: income – expenses (excluding financing and depreciation)

INCOME

The Investor’s Buddy. A simple way to compare deals: Cap rate = NOI / Capitalization

CAP RATE

invest where the money makes sense

live where you want to live

@justlikeair shanepearlman.com

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