Deal Alchemy™ - Cash Flow to Debt Paydown
Manage episode 400148445 series 3467344
Deal Alchemy™ - Cash Flow to Debt Paydown
There are four primary returns from investing in rental properties: appreciation, cash flow, debt paydown, and the tax benefits of depreciation. Additionally, there is a secondary return in the form of the interest earned on the reserves required to make the investment in the first place.
Many real estate investors prefer the cash flow return over the others.
Often, we can manipulate the investment to shift returns between appreciation, cash flow, debt paydown, tax benefits, and reserves. We call this Deal Alchemy™.
There are many variations of Deal Alchemy™, but in this mini-class, James will guide you through the process of shifting your return from cash flow to debt paydown, resulting in a higher overall return.
Check out the video from this class here:
Deal Alchemy™ - Cash Flow to Debt Paydown - Video
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 utilizing a 15-year mortgage instead of a 30-year mortgage to change the return to debt paydown
- Plus much more...
Looking to buy or sell property in Lincoln, NE? Call Jake Grenemeier of Clover Real Estate Services with Next Home Integrity at (402) 302-0088. Or, check out his website at www.Clover.RealEstate or email him at Jake@Clover.RealEstate. Jake specializes in helping real estate investors in and around Lincoln.
136 episode