Category Archives: Time Value of Money

Items involving the Time Value of Money (TVM) concepts.

CAP Rate is determined by the cost and structure of financing

I wrote a short article about this over at LinkedIn. Click here.

Posted in General, Real Estate Investing, Time Value of Money | Comments Off on CAP Rate is determined by the cost and structure of financing

Tips Are Cheerfully Accepted!

Well, I’ve finally come to it. My costs are increasing for maintaining this website, adding features to my products, writing free articles and posting free YouTube videos.
The time has come to add a PayPal Donate button. I hoped it wouldn’t come to this, but times change. By the way, it’s not a donation, because it’s not […]

Posted in General, Real Estate Investing, Time Value of Money, Wealth Creation | Tagged , , , , , , , , , , , , , , , | Comments Off on Tips Are Cheerfully Accepted!

My thoughts on Bitcoin and cryptocurrencies

Bitcoin (BTC) has been hacked several times, mostly for “proof of concept” and not for nefarious intent. The algorithms for creating new BTC are now so difficult to compute that most BTC farmers are out of that business. The processing power to break the global BTC ciphering ledger is well within the reach of organized […]

Posted in Real Estate Investing, Time Value of Money, Wealth Creation | Tagged , , , , , , , , , , , , , , , , , , | Comments Off on My thoughts on Bitcoin and cryptocurrencies

Discounted Present Value of Social Security Benefits

I just heard yet another “personal finance expert” offering some stupid advice on Social Security benefits. Social Security benefits generally become entitled at age 62. If the beneficiary defers receiving benefits for a few years, then higher monthly benefits are entitled. The so-called expert recommended NOT to elect to receive benefits at age 62, and […]

Posted in Time Value of Money | Tagged , , , , , | Comments Off on Discounted Present Value of Social Security Benefits

Only Cash Flow Matters

2014 Q1 is almost over. The lamestream media says everything is rosy (yeah, right). The problem with a cliff, even a demographic cliff, is that it is such a sharp drop-off that most folks can’t see the cliff until they are teetering the brink, especially when they are moving fast and thinking about something else.
Two […]

Posted in Real Estate Investing, Time Value of Money, Wealth Creation | Comments Off on Only Cash Flow Matters

Guru Interest Rates

I am often astonished at the real estate “Guru” who charge outrageous (unpublished) interest rates for their products. As if their astronomical pricing isn’t bad enough, they offer time payment plans that are nothing short of usurious, making high credit card interest rates seem reasonable in comparison.
I recently sat through a yet another long-winded video pitch […]

Posted in Real Estate Investing, Time Value of Money | Tagged , , , , , , , , , , , , , , , | Comments Off on Guru Interest Rates

Low Interest Rates

Low interest rates are very enticing. I want to suggest caution, because an increase in interest rates will dramatically affect the value of real property. Real estate is a “borrowed money” business. The cost and structure of financing determines the income valuation of the property. Similar to bonds, the value varies inversely to the yield […]

Posted in Real Estate Investing, Time Value of Money | Tagged , , , , , , , , , , , , , , , , , , , , , | Comments Off on Low Interest Rates

The Infamous Reverse Mortgage

I just added a free PDF special report about the infamous “Reverse Mortgage”.

There are finance companies that are offering the “Reverse Mortgage” to seniors (at least age 62). Seniors with a substantial amount of equity in their residence are targets of this aggressive predatory loan. There are many “celebrities” who claim a reputation for financial […]

Posted in Introduction to Income Valuation and Syndication, Real Estate Investing, Time Value of Money, Wealth Creation | Tagged , , , , , , , , , , , , , , , , , , , , , , , | Comments Off on The Infamous Reverse Mortgage

Guru Tips on Refinancing

I just posted a new article on the Time Value of Money (TVM) principles for refinancing your home.
I just heard some ridiculous financial advice from a “personal finance guru” regarding refinancing your home mortgage.

Refinance to a lower interest rate.

Refinance to a shorter amortization term (number of payments to pay off).

Refinance only when you can recover […]

Posted in Power Debt Plan Spreadsheet, Real Estate Investing, Time Value of Money, Wealth Creation | Tagged , , , , , , , , , , , , , , , , , | Comments Off on Guru Tips on Refinancing

Are You Ethical?

Most folks like to think that they are acting ethically and with integrity. The real test of whether you are ethically conducting your affairs is by looking from the other person’s point of view, as if what you are doing is being published on the front page of a major newspaper. I am not saying […]

Posted in General, Property Analysis Worksheet Short Form, Real Estate Investing, Time Value of Money, Wealth Creation | Tagged , , , , , , , , , , , , , , , | Comments Off on Are You Ethical?