Deal Alchemy™ - Increasing Down Payment
Manage episode 406629389 series 3467126
Deal Alchemy™ - Increasing Down Payment
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 to cash flow by changing the down payment amount.
In this class, James discusses:
- The definition of alchemy
- What is Deal Alchemy™
- How to manipulate returns and move them between quadrants
- An example by increasing the down payment size from 20% down to 25% down and how that impacts your returns... in both dollars and on your overall investment
- 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 West Palm Beach real estate investor podcast? Book a free consultation to discuss.
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