Partnerships 1) Why are they important? a) Deal access b) Deal size c) Expertise d) Better Returns e) Infinite returns? 2) Structure. Key here is that you can do whatever makes sense a) Classic Joint Venture ie 50/50 or 1/3 each etc b) 75%/25% etc –perhaps because of effort or cash contributions c) Limited Partnership---need to watch out for passive investor rules. SEC rules etc –this is syndication etc d) Creative structures—this can be just about anything you want. Ie 45/45/10 deal with one person putting up all money or whatever

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How to get started in Real estate? Start first with thinking about your goals Something to ponder before getting started Return is a function a) Risk b) Effort c) Knowledge 1) Do you need money? Short answer yes 2) Does it have to be your money? Not necessarily 3) How can you get the money to do deals yourself? Flipping, saving, partnerships, hard money, 4) Experience. How do you get it? etc Partnerships 1) Why are they important? a) Deal access b) Deal size c) Expertise d) Better Returns e) Infinite returns? 2) Structure. Key here is that you can do whatever makes sense a) Classic Joint Venture ie 50/50 or 1/3 each etc b) 75%/25% etc –perhaps because of effort or cash contributions c) Limited Partnership---need to watch out for passive investor rules. SEC rules etc –this is syndication etc d) Creative structures—this can be just about anything you want. Ie 45/45/10 deal with one person putting up all money or whatever

Whats the difference between Return on Investment and Return on Equity? Why does it matter? These are some of the issues we address as we take a dive into two common but often misunderstood metrics used my real estate investors to determine their returns.

1) Simple def. Return on Investment vs Return on Equity

2) Calculate Return on Investment

3) Calculate Cash on Cash Return Cash on Cash

4) Calculate ROE –cash on cash return

5) Also important to consider leverage

6) As equity increases though amortization and appreciation. This lowers ROE

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Understanding the Direct Capitalization Method of valuing property is essential to maximizing long term returns. Different ways to value properties 1) Replacement costs 2) Comparable sales 3) Income approach a) Gross rent multiplier (asking price/gross rent) Pro: Allows for efficient sorting of multiple properties quickly Con: Doesn't account for operating expenses b) Cap Rate/direct capitalization method Commercial properties are typically calculated via cap rates. You will some time see things like price per foot or price per door but in the end cap rates are main valuation tool. Cap rates (expanded) Definition cap rate Purchase Price (or market value) = NOI/ Capitalization rate Quick def of NOI-all income and expenses attributable to property as if you paid cash.

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In this episode we talk about the how you can build relationships with bankers and how to increase your chances of being able to borrow. What do banks look for? How can you make yourself more attractive to banks? What questions should you ask? When Working with Banks its important to Set up meetings and dress the part. When you come to the meetings its important that you come prepared Have a plan – What are you wanting to accomplish? Put together a PFS, and have previous tax returns ready Identify in advance what banks look for. They are going to want to know about your 1) Liquidity 2) Income 3) Assets 4) Credit 5) Experience Be prepared to partner with a stronger borrower if you lack these. Its important to Develop relationships with multiple banks because some lenders specialize in certain products or niches and there policy might change from time to time. Its important to have the right project for the right bank The numbers need to work and shouldn't be massaged Make sure you know your Debt Service Coverage Ratio and Loan to Value

In this show we talk about David Ricardo's law of rents. And we examine how rent prices are set. Have you ever heard a business owner blame a price increase for their goods or services on increases in the cost of rent? Did you ever wonder if the price of a movie ticket went up because the theater's rent went up? Or do you think perhaps the rent when up in response to rises in the price of movie tickets? Which one is it? Is it possible to know? It turns out there is an answer and it was discovered by David Ricardo (1772-1823) British Parliamentarian/political economist and laid out in his most famous work Principles of Political Economy and Taxation (1817) Ricardian fields example.

In this episode of the Old Fashioned Real Estate Show Brian and Jeff talk about the investments they are currently working on. Find out what they think is worth their time now. Brian talks about his new construction houses, and a recent duplex he purchased on one of Jeff's streets. Jeff talks about multifamily investing and about the apartments he has recently purchased. Then we talk about a couple of deals that we are currently looking at or have recently acquired including a strip mall, some retail and office space. We finish by talking about how you can make huge returns in Multifamily apartment investing through value add deals. Be sure to check out our website www.oldfashionedrealestate.com

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In this episode of the Old Fashioned Real Estate Show Hosts Brian Levredge and Jeffrey Holst do something they have only done once before (Part One) before, they take questions from all over the country. Listen and learns as Coty asks what to think about before you quit your full time job, Paul asks us how to decide to between long and short term rentals and how to decide if you should be flipping versus buying for the long term, and then John asks about Dave Ramsey and living debt free. Leverage Episode

We plan to do more of these videos in the future so be sure to reach out with your questions. We can be found on Facebook or our website at www.oldfashionedrealestate.com

In this episode of the Old Fashioned Real Estate Show Hosts Brian Levredge and Jeffrey Holst do something they have never done before, they take questions from all over the country. Listen and learns as Emily asks how to find deals, Jason asks about real estate investment trusts and syndication, and as Coty asks about commercial real estate and land leases. We plan to do more of these videos in the future so be sure to reach out with your questions. We can be found on facebook at or our website

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How long do real estate market cycles last? Where are we in the cycle? How do we know? When will the next recession arrive? What should we do to prepare?

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The market cycle tends to be 18 years. If that's true it may still be awhile until the next peak. The last nationwide peak was in 2006. So does that mean we have until 2024?

Fred Foldvary Depression of 2008 http://www.foldvary.net/works/dep08.pdf

further reading https://www.progress.org/articles/the-depression-of-2026