Category Archives: Time Value of Money

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

Should I Pay Off This Mortgage Loan?

I just heard a personal finance expert recommend paying off a mortgage that has 14 years remaining. Here are the parameters of the 30-year fixed rate loan: Debt Present Value:   229,880Remaining Term:           168  (16 years paid, 14 years left)Annual Interest Rate:     6.6% (fixed over 30 years)Monthly Debt Service:  -2,100  (principal + interest)Annual Debt Service:  -25,200 From […]

Product Update: Calculating Capitalization Rate

I just added a new video tutorial “Calculating Capitalization Rate” to my information product “Introduction to Income Valuation and Syndication“. You can see the version here.

Decrease Expense or Increase Income?

I just posted an article “Decreasing Spending versus Increasing Income“, which talks about why increasing your passive income is better than decreasing your spending. Many so-called “personal finance experts” are too focused on decreasing expenses. In general, decreasing “bad spending” is good. I just think that you should focus more on increasing your income by […]

The Cost of Delaying Benefits

Why is common sense so rare? I just heard yet another “economics expert” on cable television (a business finance talk show) talking about delaying Social Security benefits to increase the beneficiary’s income. Here are the basic terms: At retirement age of 62, the basic monthly benefit is X. I’ll throw in a number of $500, […]

Risk Spread Premium

Risk Spread Premium I just read a short article from a real estate guru. He was talking about the “Risk Spread Premium” on real estate Capitalization (CAP) Rates compared to the 10-year US Treasury bond. His basic assertion is to compare the difference (spread) between the average CAP rate of income properties to the yield […]

Income Analysis Summary Tutorial1

I’ve added a short video tutorial about Income Analysis. I sometimes get upset when real estate Guru make mistakes. I take exception to Guru teaching erroneous methods of analysis. The Guru was basically saying to analyze the income and expense as advertised and then decide whether the property is being offered at a good asking […]

New information product for Income Valuation and Syndication!

How to Get Paid to Buy Income Property for Other People! I just uploaded my new information product that teaches how to calculate the income valuation for a commercial property, how to structure financing, and how to specify the syndication parameters for you to get paid to buy income property. Check out the sales page […]

Power Debt Plan Spreadsheet product update new tutorials!

The Power Debt Plan spreadsheet has added video tutorials 7 & 8 that demonstrates an advanced concept of using leverage to pay down your debt much faster. Check out the sales page to see the YouTube versions of the videos.

New Power Debt Plan Spreadsheet available now!

I just released my latest information product! I am sure you’ve heard of “Debt Snowball” and “Mortgage Accelerators”. If you are struggling with bad debt and don’t know how to dig yourself out of it, then this product is for you. It is a Microsoft Excel 2007 spreadsheet. It has powerful macro software that calculates […]

What is Front-Loaded Interest?

Many folks, even seasoned finance experts, misunderstand the meaning of “front loaded” interest. They are confused by charts and graphs that show over time the interest portion of an amortizing mortgage loan payment. The chart shows the interest portion starting out high and then curving downward eventually to zero at the end of the amortization […]