Drew Denham's Reviews > Skip the Flip: Secrets the 1% Know About Real Estate Investing
Skip the Flip: Secrets the 1% Know About Real Estate Investing
by
by
** spoiler alert **
Great for a new investor but for someone who’s seasoned perhaps not the best read.
The average millionaire has 7 streams of income.
Adopt a new mindset.
The main fundamental to follow to avoid pain in a recession is to buy real estate for cash flow rather than to flip it for a one time profit.
“Ghost expenses” - loopholes and incentives in the US tax code to at allows real estate investors to write off.
Don’t bend your rules on flipping - to make the numbers work.
Realtor is service based business than a real estate business
Underwriting - fancy word for analyzing
Inflation - every year, the value of the dollar is supposed to go down by 2%.
2% increase in rent per year minimum
The cap rate tells us what % of the purchase price the NOI is going to be over a 12 month period
Accelerated depreciation ⭐️⭐️⭐️⭐️⭐️
1031 - when you sell your property you have 45 days to identify a replacement property and 180 days to actually buy the property you say you are going to. The purchase price of the propertie(s) you buy has to more than the sales price of the property you sold.
If you can only identify 3 potential properties, if more you have to buy them all or pay all your taxes ⭐️
Interest paid = interest rate/12 x balance
Don’t wait to buy real estate, buy real estate and wait.
Value add investing ⭐️
Time value of money - a dollar today is worth more than a dollar tomorrow
IRR - need to get more familiar with.
Mortgage constant - 12x monthly payments / loan amount
Need Cash on cash higher, as well as cap rate higher
Potential gross income = monthly rent x number of unit
Accredited investors - $200k a year as single, $300k married (need to make that)
Knowledge without action is useless. Get out of your comfort zone and take action today!
The average millionaire has 7 streams of income.
Adopt a new mindset.
The main fundamental to follow to avoid pain in a recession is to buy real estate for cash flow rather than to flip it for a one time profit.
“Ghost expenses” - loopholes and incentives in the US tax code to at allows real estate investors to write off.
Don’t bend your rules on flipping - to make the numbers work.
Realtor is service based business than a real estate business
Underwriting - fancy word for analyzing
Inflation - every year, the value of the dollar is supposed to go down by 2%.
2% increase in rent per year minimum
The cap rate tells us what % of the purchase price the NOI is going to be over a 12 month period
Accelerated depreciation ⭐️⭐️⭐️⭐️⭐️
1031 - when you sell your property you have 45 days to identify a replacement property and 180 days to actually buy the property you say you are going to. The purchase price of the propertie(s) you buy has to more than the sales price of the property you sold.
If you can only identify 3 potential properties, if more you have to buy them all or pay all your taxes ⭐️
Interest paid = interest rate/12 x balance
Don’t wait to buy real estate, buy real estate and wait.
Value add investing ⭐️
Time value of money - a dollar today is worth more than a dollar tomorrow
IRR - need to get more familiar with.
Mortgage constant - 12x monthly payments / loan amount
Need Cash on cash higher, as well as cap rate higher
Potential gross income = monthly rent x number of unit
Accredited investors - $200k a year as single, $300k married (need to make that)
Knowledge without action is useless. Get out of your comfort zone and take action today!
Sign into Goodreads to see if any of your friends have read
Skip the Flip.
Sign In »