Category Archives: Wealth Creation

Items involving the concepts of wealth creation.

Millions in Nothing Down Real Estate

I just published my next eBook, “Millions in Nothing Down Real Estate“. This book is a very simplified version of my “How to Pyramid Your Equity to Create Wealth and Financial Freedom” (click here).
My latest eBook focuses on generating wealth through passive income by buying income properties with Nothing Down (no cash out of your own […]

Posted in Millions in Nothing Down Real Estate, Real Estate Investing, Wealth Creation | Tagged , , , , , , , , , , , , , , , , , , , , , , , | Comments Off on Millions in Nothing Down Real Estate

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

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

Preparing for another economic crisis

Housing prices will collapse with a nominal increase in interest rates. Get your financial calculator: N=360 (30 years), Rate=4% per year, PV=100,000, PMT=477.52, FV=0. Those are the numbers for a $100,000 mortgage debt at 4% per year, fully amortizing over 30 years. Change the interest to Rate=6% and recalculate PV=79,628.87. That’s 20.4% decline for the […]

Posted in General, Real Estate Investing, Wealth Creation | Tagged , , , , , , , , | Comments Off on Preparing for another economic crisis

Buy or Refinance Now

The valuation of income properties is directly tied to the cost and structure of financing. Real estate is a “borrowed money” business. As interest rates rise, the capitalization rate required to service the debt for a purchase or refinance also rises, and thus the valuation falls. As the valuation falls, existing debt Loan to Value […]

Posted in Real Estate Investing, Wealth Creation | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Comments Off on Buy or Refinance Now

The Equity Waterfall for a Syndicator

I just wrote an article about my preferred structure for structuring the equity financing with senior equity, preferred equity, and common equity.
A syndicator that raises private equity may consider an equity waterfall that is similar to a combination of debt and equity. Treat the senior equity like a 1st lien and the preferred equity like […]

Posted in Introduction to Income Valuation and Syndication, Real Estate Investing, Wealth Creation | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , | Comments Off on The Equity Waterfall for a Syndicator

Capitalization Rate and Cash on Cash Return

I just added a new article on the correct way to calculate the Capitalization Rate (CAP) according to the cost and structure of financing.
An income property is generally valued on its cash flow, either the current cash flow or the anticipated future cash flow after repositioning. The valuation of the cash flow is calculated according […]

Posted in Real Estate Investing, Wealth Creation | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Comments Off on Capitalization Rate and Cash on Cash Return

Generate a PDF syndication package or a loan request package

I just made a major update to the very affordably priced  “Introduction to Income Valuation and Syndication” course. With the sophisticated macro-enabled Excel 2007 ProFormaStabilized.xlsm spreadsheet, you can now generate a multi-page PDF presentation package for syndicating to your private financiers or for submitting a loan request to a commercial lender. There are several tutorial videos […]

Posted in Introduction to Income Valuation and Syndication, Real Estate Investing, Wealth Creation | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Comments Off on Generate a PDF syndication package or a loan request package

New Video: Master Lease and Option RUBS

I added a powerful spreadsheet for calculating and generating invoices for the Ratio Utility Billing System (RUBS). There are 2 video tutorials showing how to use the spreadsheet and how to generate the mail merge templates. The spreadsheet supports unlimited number of residents, you can bill pro-rated for electric, gas, water, sewer, or any combination […]

Posted in Introduction to Income Valuation and Syndication, Real Estate Investing, Wealth Creation | Tagged , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , | Comments Off on New Video: Master Lease and Option RUBS