For our 2013 team retreat at Modern Tribe, I gave a 10 minute talk on the basic principles of real estate investing. Why the pandas you might ask? MY daughter thinks they are cute. 'Nuf said.

1. REAL ESTATE INVESTING IN 10 MINUTES
Basic strategies for the acquisition of long-term wealth with properties.

2. 1. WHERE DOES PROFIT COME FROM?

3. Cashflow
Is
KING
Getting cash monthly is great and it provides
you the cushion to survive market turbulence.

4. APPRECIATION Hey
MSA,
you
look
mighty
fine
with
all
those
new
jobs.
ignore
the
panda
on
my
head,
I’m
trapped
in
a
meme.
Most significant profits in real estate come
from an increase in the value of the property.

5. Principal Paydown

6. DEPRECIATION
Take advantage of tax law when you can, but never depend
on it sticking around or it might hurt. #fightlikeapanda

7. 2. APPROACHES

8. BUY & HOLD
Buy & rent. Collect a small check. Hold on and collect
more checks. Pay off the loan, collect big checks.

9. CREATE EQUITY
Remodel or Repurpose. Often, elbow grease
& grey matter is all you need to increase property value.

12. FAST FLIP
Buy it, then turn right around and sell it. Higher
Risk, Higher Reward.

13. OWNER EXEMPT FLIP
Live in it for 2 years and it qualifies as a personal
property. 500k profits tax free baby.

14. SYNDICATION
Want to play, but short on cash? I know how
you feel. Buddy up with partners.

15. 3. ONE SPREADSHEET TO RULE THEM ALL

16. Net
OperaAng
INCOME A fancy way to say:
income – expenses (excluding financing and depreciation)

17. CAP RATE
The Investor’s Buddy. A simple way to compare deals:
Cap rate = NOI / Capitalization

18. live where you want to live
invest where the
money makes sense

19. @justlikeair shanepearlman.com