Job + real estate = wealth half hour

Don’t Have the Time

Don’t Know How to

Don’t Appreciate the Value of a JOB


Don’t Know How to



People that do nothing

5 Personality Types

People that do nothing and over-analyze

People that do nothing and talk

People that simply do without any analysis

People that do nothing

People that do nothing and over-analyze

People that do nothing and talk

People that simply do without any analysis

5 Personality Types

The Blended-Business Personality

The Process Wheel

Business Scalability is the systematic (process-oriented) ability to replicate or duplicate the desired economic outcome of an initiative over and over

again

Scalability


Don’t Know How to


Facts: 6-unit apartment building Purchase Price = $360,000.00; Down payment = $72,000.00; Loan = $288,000.00;

Interest = 5% amortized over 25 yrs

Cash Flow

LeverageFacts: 6-unit apartment building

Purchase Price = $360,000.00; Down payment = $72,000.00; Loan = $288,000.00; Interest = 5% amortized over 25 yrs

Tax BenefitsFacts: 6-unit apartment building

Purchase Price = $360,000.00; Down payment = $72,000.00; Loan = $288,000.00; Interest = 5% amortized over 25 yrs

Total Revenue (Rents Received) = $67,400.00Vacancy Loss = $2,700.00Economic Loss = $2,950.00Adjusted Gross Revenue = $61,750.00

Operating Expenses = $24,700.00Net Operating Income = $37,050.00Mortgage Payments = $20,203.00

Cash Flow = $16,847.00

Cash Flow

Purchase Price = $360,000.00

Bank Financing = $288,000.00Owner Down Payment = $72,000.00

Cash Available = $72,000.00Choice = Stocks/CD or Rental Real Estate

Fair Assumption = 10% return on value for both the Stock/CD or Real Estate

Return: Rental Real Estate$360,000.00 x 10% = $36,000 return

+ $72,000.00 original investmentYear 1 Cash Out = $108,000.00

Return: Stock/CD$72,000.00 x 10% = $7,200.00 return

+$72,000.00 original investmentYear 1 Cash Out = $79,200.00

Leverage

Benefit We Received = $16,847.00

(cash flow) + $5,938.00 (principal

reduction) = $22,785.00

What we are Taxed on =

$26,141.00 - $14,265.00 =

$11,876.00

Tax Benefits

Building Value = $360,000.00 -

$60,000.00 (Building Value = Purchase

Price – Land Value) = $300,000.00

Depreciation of Building Value =

$300,000.00/27.5yrs = $10,909.00/year

Potential Tax Liability = NOI = $37,050.00

Depreciation Deduction = $37,050.00 -

$10,909.00 = $26,141.00

Mortgage Interest Deduction =

$14,265.00

Leading Your Success Team

Conventional Way

Showing

Showing

Showing

Showing

Showing

Search Bank

Financing

Bank Decides Title

Company

Shop for Insurance

Self Manage

Find the cheapest

Property Manager

The Buying Process

Offer/Reject

Offer/RejectOffer/Reject

Search Bank Financing

Search Bank

Financing

Offer/Accepted

Job + Real Estate = Wealth Way

Perform Job + Real Estate = Wealth Proforma

RE Agent – engagedBanker - engagedIns Co – engagedPr Mgr - engaged

Submit OfferInspect Property - insurance hat - deferred maint - lease expir units

Review requested documentation

The Buying Process

Basic Information

Income

Operating Expenses

Underwriting Proforma

Performance Metrics

PROFORMA

Basic InformationPROFORMA

IncomePROFORMA

Operating ExpensesPROFORMA

Performance MetricsPROFORMA


Don’t Know How to


1. Your JOB offers you the Dignity, Ability & Stability (DAS)

2. Be the Entrepreneur at Work

3. If you Love your JOB – keep it!

4. Layout your Assets

5. Show them the Money

5 Ways to View Your Job

5 Personality TypesThe Process WheelScalability within your Process

Leading Your Success TeamCash FlowLeverageTax BenefitsThe Buying ProcessPerform Property ProformaManage your Property ManagerSecure a great Insurance PolicyObtain aggressive Bank FinancingHave your Real Estate Agent show you properties that make sense 5 Ways to View your Job


Don’t Know How to
