San Mateo Real Estate Investing & Real Estate Financial Planning™ Podcast

James Orr

Learn all about investing in real estate in San Mateo, California with a combination of real estate financial planning and modeling with numbers specific to San Mateo plus syndicated, more generalized recordings of live and pre-recorded real estate investing classes (not all specific to San Mateo). read less
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Is It Better to Pay Off Rentals Early With Extra Cash Flow or Traditional Nomad™?
Hace una semana
Is It Better to Pay Off Rentals Early With Extra Cash Flow or Traditional Nomad™?
Investing in real estate is full of truthy-sounding falsehoods: it is always better to do X than Y. However, if you were crazy enough to sit down and do the math, you'd find the truth to be much more nuanced. For example, should you take all your extra cash flow and savings and apply it to your mortgages each month to pay off rental properties faster? And if you do, is that a faster path to financial independence? Does it result in your having a higher overall net worth? A higher overall standard of living in retirement? Is it less risky to do that? That's what we will discuss in this special comparison class. I have analyzed over 300 US markets for someone utilizing the Nomad™ real estate investing strategy in two flavors. In one group, they do the traditional Nomad™ model and do not pay anything extra to pay off their mortgages early. In the other group, they do Nomad™ but they apply extra cash flow toward paying off their properties early. Which group performs better in the metrics we outlined above? Is it universally better? Or is it market-dependent? Find out in this mini-class. Check out the video and interactive charts from this class here: https://RealEstateFinancialPlanner.com/model/nomad-or-pay-off-early-with-cash-flow/ Or, see San Mateo specific, detailed analysis of a variety of strategies here: https://RealEstateFinancialPlanner.com/model/CA/San_Mateo/ 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/spreadsheetImprove 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 San Mateo real estate investor podcast? Book a free consultation to discuss.
Deal Alchemy™ - Cash Flow to Debt Paydown
09-02-2024
Deal Alchemy™ - Cash Flow to Debt Paydown
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 alchemyWhat is Deal Alchemy™How to manipulate returns and move them between quadrantsAn example of utilizing a 15-year mortgage instead of a 30-year mortgage to change the return to debt paydownPlus 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/spreadsheetImprove 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 San Mateo real estate investor podcast? Book a free consultation to discuss.
Warning - The Risk of Down Payment Size When Investing in Real Estate
02-02-2024
Warning - The Risk of Down Payment Size When Investing in Real Estate
Warning - The Risk of Down Payment Size When Investing in Real Estate Life is full of risks. When we choose to invest, we choose to take on additional risks. If we invest in stocks, we choose to take on certain risks. When we choose to invest in bonds, we take on different risks. When we choose to invest in real estate, we choose to take on additional and different risks. One of the risks associated with real estate investing is the risk of down payment size. If you put a large amount down—or even choose to pay cash and put 100% down—you have certain risks. If you choose to put a small amount down—or even nothing down—you have other risks. These risks change with the amount you put down. In this mini-class, James will look at the risks associated with the amount you put down when investing in real estate. Check out the video from this class here: Warning - The Risk of Down Payment Size When Investing in Real Estate - Video In this class, James discusses: A George S Patton quote about fear, risks and making decisions.The Risk Matrix and The Risk Matrix for property appreciation (and property declines)An introduction to Rent Resiliency™ and Price Resiliency™Case-Shiller Home Price Index - Home Price Appreciation Over Previous 12 MonthsA Case-Shiller chart showing mortgage interest rates, population, real building costs and home prices over the last 133 yearsYear-Over-Year Home Price Appreciation over the last 133 years and the frequency of price declines (and price increases)What are you risking?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/spreadsheetImprove 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 San Mateo real estate investor podcast? Book a free consultation to discuss.
What Affects Your PMI Rate
19-01-2024
What Affects Your PMI Rate
What Affects Your PMI Rate Lenders prefer that you put at least 20% down, but if you push hard enough, many will allow you to put less than 20% down if you're willing to purchase insurance to protect them in case you default. This insurance is called Private Mortgage Insurance. The cost of this insurance depends on several factors. Some are primary factors and have a significant impact on the cost of the insurance policy. Other factors are secondary and affect the premium, but only to a smaller extent. In this mini-class, James will go over the things that affect your private mortgage insurance rate if you decide to put less than 20% down when buying properties. Check out the video from this class here: What Affects Your PMI Rate - Video In this class, James discusses: What is Private Mortgage Insurance (PMI) and why does it exist?Factors that affect your PMI rateLoan-To-Value of the property (often just the first lien)Coverage amount for the lenderYour credit scoreAmortization term of the loan itself - shorter terms have lower PMIFixed and variable payment amountsTime you’ve been paying the rateLender (separate pricing sheet for Credit Unions)Hard minimums for PMI ratesCash-out refinanceSecond homeEmployee relocation loansManufactured HomesInvestment Property3-4 unitsLender-Paid Monthly PremiumDeclining RenewalsAnnual PremiumRefundable Monthly PremiumHigh Debt-To-Income Ratio (> 45% DTI)More than 1 borrower on the loan (reduces PMI rate)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/spreadsheetImprove 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 San Mateo real estate investor podcast? Book a free consultation to discuss.
Is It Better to Rent or Buy an Owner-Occupant Property for 5% Down When Otherwise Buying 25% Down Rentals?
12-01-2024
Is It Better to Rent or Buy an Owner-Occupant Property for 5% Down When Otherwise Buying 25% Down Rentals?
You're a real estate investor looking to acquire properties by saving up and putting 25% down. Should you buy an owner-occupied property first? What if that's more expensive than renting? Should you still do it? What if it means you'll be saving less for acquiring rentals by buying an owner-occupied property first? In this comparison class, we will put buying 25% down rentals in a head-to-head competition... We will analyze 304 real estate markets and see if you can achieve financial independence faster by buying an owner-occupied property first. We'll also look at your net worth and see if buying an owner-occupied property or renting leads to a higher overall net worth. Check out the video and interactive charts from this class here: https://RealEstateFinancialPlanner.com/model/25-rent-oo/ Or, see San Mateo specific, detailed analysis of a variety of strategies here: https://RealEstateFinancialPlanner.com/model/CA/San_Mateo/ 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/spreadsheetImprove 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 San Mateo real estate investor podcast? Book a free consultation to discuss.
Deal Alchemy™ - Lease-Options
05-01-2024
Deal Alchemy™ - Lease-Options
Deal Alchemy™ - Lease-Options Different real estate investors desire, prefer, and prioritize different returns. For example, many real estate investors have a strong preference for the cash flow part of their return. With Deal Alchemy™, we can manipulate returns and move them from one area to another. Or, we can move them from one or more areas to one or more other areas. For example, using Deal Alchemy™, we can sometimes manipulate the appreciation return in exchange for better cash flow. In this mini-class, James will talk about how to use Deal Alchemy™ with a lease-option deal to manipulate returns from appreciation to cash flow, plus much more. Check out the video from this class here: Deal Alchemy™ - Lease-Options - Video In this class, James discusses: The definition of alchemyWhat is Deal Alchemy™How to manipulate returns and move them between quadrantsAn example of utilizing a lease-option to move returns to improved cash flowA discussion on how to apply an option-feePlus 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/spreadsheetImprove 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 San Mateo real estate investor podcast? Book a free consultation to discuss.
Warning - Insurable Risks When Investing in Real Estate
29-12-2023
Warning - Insurable Risks When Investing in Real Estate
Warning - Insurable Risks When Investing in Real Estate Life has risks. Real estate investing in San Mateo adds some additional risks. Some of these risks can be shifted from your responsibility to the responsibility of a third party for a fee. This is often described as insurance. You choose to pay someone else to take on a risk you don't want to take on yourself. In this mini-class, James will go over a variety of insurable risks that real estate investors experience and how to mitigate or eliminate them. Check out the video from this class here: Warning - Insurable Risks When Investing in Real Estate - Video In this class, James discusses: A George S Patton quote about fear, risks and making decisions.The Risk MatrixWhat is insurance?Insurable risksThe most common insurable risks: fire, lightning, hail, theft, vandalism, personal injury, and liabilitySome less commonly insurable risks: loss of income, flood, earthquake, hurricane, tornado, meth, and rent guaranteeThe considerations of deductible sizePlus 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/spreadsheetImprove 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 San Mateo real estate investor podcast? Book a free consultation to discuss.
What is PMI And How to Avoid It
15-12-2023
What is PMI And How to Avoid It
What is PMI And How to Avoid It You want to work with a lender so that you don't need to purchase a property with all cash. The lender is willing to lend you money, charging you interest to make a profit, and ensuring there is a safety buffer of equity in case you default and they need to foreclose to recover their funds. Your goal is to minimize the amount you need to invest in the deal to maximize your return on investment, but the lender requires a minimum down payment of 20% to feel secure in loaning you the money in case you default and they need to foreclose to recover the property and their money. You insist on putting down less than 20%. Reluctantly, they agree to let you put less than 20% down, but only if you purchase third-party insurance to protect them in case of default. You agree. The third-party insurance company is offering private mortgage insurance (PMI), which is insurance you pay to protect the lender in case you default because you put down less than 20%. In this mini-class, we will look at PMI, what it is, and how you can avoid it as a real estate investor. Check out the video from this class here: What is PMI And How to Avoid It - Video In this class, James discusses: What is Private Mortgage Insurance (PMI) and why does it exist?What is PMI called for FHA loans?How to avoid paying PMI?Putting at least 20% down to avoid paying PMIPaying down on your loan to get rid of PMIOpting to take a higher mortgage interest rate instead of PMIGet a loan that doesn't have PMI at allUtilize the creative financing strategies that don't have PMIPlus 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/spreadsheetImprove 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 San Mateo real estate investor podcast? Book a free consultation to discuss.
Is It Better to Put 25% Down and Buy 9 Rental Properties After Buying an Owner-Occupant or Nomad™ with 5% Down?
08-12-2023
Is It Better to Put 25% Down and Buy 9 Rental Properties After Buying an Owner-Occupant or Nomad™ with 5% Down?
Should you use the Nomad™ strategy to acquire properties with a minimal 5% down payment as quickly as possible? Or is it better to be a little more patient and save up for full 25% down payments and buy rentals without moving into each? By saving up for a 25% down payment, the properties will cash flow better. That may allow you to save up faster for subsequent properties and maybe... just maybe... ultimately be able to buy properties faster. If you're buying properties with a 5% down payment, there's a chance they could have negative cash flow—or what we often refer to as deferred down payment. Deferred down payments mean that it is slower to save up for the next property purchase. This could ultimately slow down how fast you can acquire properties. Of these two strategies—25% down payment rentals or 5% down Nomad™—which will lead to the fastest path to financial independence? Which leads to the highest net worth? Which has the least amount of risk? Check out the video and interactive charts from this class here: https://RealEstateFinancialPlanner.com/model/nomad-versus-25-down-payment/ Or, see San Mateo specific, detailed analysis of a variety of strategies here: https://RealEstateFinancialPlanner.com/model/CA/San_Mateo/ 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/spreadsheetImprove 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 San Mateo real estate investor podcast? Book a free consultation to discuss.
Improving Cash Flow on Rental Properties by Improving the Property
01-12-2023
Improving Cash Flow on Rental Properties by Improving the Property
Improving Cash Flow on Rental Properties by Improving the Property When real estate prices, mortgage interest rates, and rent rates are high, it can be more challenging to generate great cash flow from a rental property. However, it is also more important than ever to do everything in your power to maximize cash flow. There are 88 strategies for improving cash flow on rental properties, with some significant ones that you can apply by making improvements to your rental property. This mini-class covers the cash flow improving strategies that you may make by improving the property. Check out the video from this class here: Improving Cash Flow on Rental Properties by Improving the Property - Video In this class, James discusses: The 7 stages to improve cash flow on rental propertiesSubdividing propertiesUpgrading the propertyAdding solar to the propertyProviding furnished rentalsConverting the propertyCharging improvement rent for tenant-requested improvementsHow to calculate the ROI on making improvementsPlus 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/spreadsheetImprove 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 San Mateo real estate investor podcast? Book a free consultation to discuss.
Financing Tips When Writing an Offer to Buy a Rental
17-11-2023
Financing Tips When Writing an Offer to Buy a Rental
Financing Tips When Writing an Offer to Buy a Rental So, you understand financing for buying your next property, and you're ready to go out in search of a property to buy. There are a few financing-related tips that might help set you up for success, improve the odds of getting your offer accepted, getting the best price and terms on your offer, and make your life easier. That's what we will discuss in this mini-class. Check out the video from this class here: Financing Tips When Writing an Offer to Buy a Rental - Video In this class, James discusses: What you should have done (and in hand) before you go look at properties?What you absolutely need before you write an offer on a rental property?What you can do with your lendeer to give yourself that extra edge when writing an offer to buy a property?Why you should get a pre-approval letter with your MAXIMUM loan amount from your lender... even if you never intend to ever go close to your maximum.Why waiting until the last minute can make you miss out on the very best dealsThe pros and cons of using the max or the offer price on your pre-approval letterPlus 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/spreadsheetImprove 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 San Mateo real estate investor podcast? Book a free consultation to discuss.
Is It Better to Sell Properties to Invest in Stocks If That Means Financial Independece When Nomading™?
10-11-2023
Is It Better to Sell Properties to Invest in Stocks If That Means Financial Independece When Nomading™?
Sometimes buying rental properties is merely a means to an end: financial independence. Some folks don't want to hold onto their rental properties, manage them, or deal with the business of owning them when they achieve financial independence. Instead, they may prefer to have their money more passively invested in stocks. Can a real estate investor buy properties and hold onto them until they can sell off all the rentals, pay all their expenses of the sale—including closing costs, capital gains taxes, depreciation recapture taxes, and real estate commissions—then take the proceeds and invest in the stock market utilizing a safe withdrawal rate? And is that a faster approach to achieving financial independence than trying to get your properties to the point where they're cash flowing enough to support you without working? In this mini-class, James will look at Nomading™ versus Nomading™ but being willing to sell off all your rental properties if doing so can make you financially independent and allow you to invest in stocks using a safe withdrawal rate. Check out the video and interactive charts from this class here: https://RealEstateFinancialPlanner.com/model/nomad-selling-all-rentals-fi-swr/ Or, see San Mateo specific, detailed analysis of a variety of strategies here: https://RealEstateFinancialPlanner.com/model/CA/San_Mateo/ 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/spreadsheetImprove 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 San Mateo real estate investor podcast? Book a free consultation to discuss.
Tips for Getting Mortgage Quotes from Lenders
03-11-2023
Tips for Getting Mortgage Quotes from Lenders
Tips for Getting Mortgage Quotes from Lenders If you choose a random lender, you'll have a random chance of closing with financing. And in many markets, if your lender fails to perform, you as the buyer are in default (since your lender is not a party to the contract). Wouldn't you rather have more certainty that your lender will perform and that you select a lender that will give you great service, with reasonable fees, and a great mortgage interest rate? Yes, it seems like a very reasonable expectation. In this mini-class, James will go over tips for selecting and getting mortgage quotes from lenders. Check out the video from this class here: Tips for Getting Mortgage Quotes from Lenders - Video In this class, James discusses: The best sources for finding a great lenderWhy choosing a random lender gives you a random chance of successfully closing on your propertyWho is responsible if the lender you choose does not perform?Tips for calling lendersShould you have your lender pull your credit report?Why you should you call all your prospective lenders on the same dayLender questions to askQuestions to ask about your lenders fees and their teamGetting references from your lenderPlus 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/spreadsheetImprove 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 San Mateo real estate investor podcast? Book a free consultation to discuss.
Ways to Speed Up Achieving Financial Independence
30-10-2023
Ways to Speed Up Achieving Financial Independence
How can you speed up your journey to financial independence (FI)? In this special class, James will go over a brand-new spreadsheet and walk you through all the different ways to speed up your achievement of financial independence. James covers the following in this class: What is financial independence?How is financial independence defined mathematically? How do you know if you're financially independent?A brief discussion of pensions, annuities, and social security and why you may prefer to focus elsewhereAn introduction to the new Financial Independence Asset Allocation and Cash Flows Engine™ spreadsheetSpeeding up FI via job incomeSpeeding up FI via propertiesSpeeding up FI via business profitsAn introduction to Safe Withdrawal RatesSpeeding up FI via invested assets (and a SWR)Speeding up FI with annuitiesBesides earning more money and reducing expenses, what are the strategies for achieving FI faster?Sources of money to invest... and allocating that money to speed up FIInvesting or reinvesting in what to speed up FI?The three primary groups of strategies to improve speed to FI: increase savings, increase returns, and reallocate assets.All the strategies for increasing savingsAll the strategies for increasing returnsA discussion of Return on Equity and why it matters when you're trying to speed up your achievement of financial independenceAll the strategies based on reallocating assetsRisk versus speed - a tricky tradeAnd 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/spreadsheetImprove 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 San Mateo real estate investor podcast? Book a free consultation to discuss.
Preparing to Get Mortgages
27-10-2023
Preparing to Get Mortgages
Preparing to Get Mortgages So, you’ve decided to invest in real estate and know that you’ll need a mortgage to buy property. There are some things you should do BEFORE you apply for your mortgage. You should be thinking about these things ideally for multiple years before you try to get a mortgage. In this mini-class, we will discuss the preparation you should do before getting a mortgage and how to make the process faster, better, and easier, especially if you plan to buy more than one property. Check out the video from this class here: Preparing to Get Mortgages - Video In this class, James discusses: Knowing your qualification requirements from your lenderGetting a loan when you're self-employedDon't be penny-wise, pound-foolishKnowing and improving your credit score (one way to maximize cash flow)Understanding Debt-To-Income and using it to your advantage to maximize cash flowSaving money preparing to get mortgage (and uses of that money to make sure you optimize cash flow)A list of often requested document when applying for a mortgageOrganizing your files to be prepared for applyingPlus 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/spreadsheetImprove 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 San Mateo real estate investor podcast? Book a free consultation to discuss.