What is the ideal down payment when purchasing a rental property?

While some real estate investors may barely scrape together the minimum down payment, there are advantages to putting down more. Additionally, changing your strategy to allow for a smaller down payment may also have advantages.

In this mini-class, James discusses how different down payment amounts can affect interest rates, overall return on investment, and changes you are likely to see in both interest rate and cash flow.

Check out the video and interactive charts from this class here:

https://refp.substack.com/p/how-much-should-you-put-down-when

In this class, James discusses:

• Not just down payment... total cost to close + reserves + probably cumulative negative cash flow
• How much should you put down?
• Interest rates vary based on owner-occupant and non-owner-occupant
• Interest rates vary based on loan program
• Interest rates vary based on down payment
• Return in dollars - what changes and what stays the same?
• Return on investment - how does it change with various down payment options
• Chart showing effective interest rate for various down payment options (owner-occupant and non-owner-occupant investor loans)
• Chart showing monthly payments for various down payment options (owner-occupant and non-owner-occupant investor loans)
• Chart showing difference in monthly payment (and therefore cash flow) for the same down payment
• Chart showing return in dollars for various down payment options (owner-occupant and non-owner-occupant investor loans)
• Chart showing return on investment for various down payment options (owner-occupant and non-owner-occupant investor loans)
• Plus much more...

Property prices and interest rates are high, while rents are lagging. Cash flow is both more important and harder to achieve than ever, even with our 88 strategies to improve and maximize it.

But a debate still remains: should you use smaller 5% down payments with the Nomad™ real estate investing strategy to acquire your rental properties, or should you save up 20% and buy non-owner-occupant properties at a slightly slower pace?

In this special class, James will conduct a thorough comparison of the two strategies across 300 US markets, as the numbers vary depending on your local market's prices, rents, and income.

Which strategy gives you a higher net worth? Which gets you to financial independence the fastest? Which is the safest, and which has the most risk? Plus much more.

After attending this class, you should have a much clearer understanding of whether you should seriously consider the Nomad™ strategy or opt for a slightly slower pace with 20% down payments when acquiring up to 10 rental properties.

See how putting 5% down compares to putting 20% down to acquire 10 properties compares in 300 US cities.

Check out the video and interactive charts from this class here:

https://RealEstateFinancialPlanner.com/model/nomad-versus-20-down-payment/

Or, see The Villages specific, detailed analysis of both the Baseline Nomad™ strategy and 20% down payment strategy here:

https://RealEstateFinancialPlanner.com/model/FL/The_Villages/

How to Get the Down Payment When Buying Rental Properties

There are two primary ways to deal with down payments when buying rental properties: first you can REDUCE the need for them and second you can focus on ways to PRODUCE the down payment required. In this mini-class, James discusses strategies to produce the down payments when buying rental properties.

Check out the video of this class here:

How to Get the Down Payment When Buying Rental Properties - Video Recording

In this special mini-class for the Real Estate Financial Planner™ coaching program James covers:

• We're not just talking about down payment... but...
• Reduce and Produce
• Will it work for me? Fools will... and intelligent, gritty, resolved people will...
• “Investment Cards” (aka Credit Cards)
• Security Deposit
• Maintenance Reserves
• Property equity
• Depreciation
• Retirement Account
• Family Members (Legacy Nomad™)
• Sell stuff you don’t need or want
• Saving
• From regular job, part-time, extra job, business to fund your retirement (or build your fortune)
• Partnering
• Rents (including House Hacking)
• Lease-Option Fees
• Plus more...

Improving Cash Flow When Financing Your Next Rental Property

When prices are high, mortgage interest rates are high, and rents are lagging, it can be more challenging than ever to generate great cash flow from a rental property. However, it is also more important than ever to do everything in your power to maximize cash flow.

There are 88 strategies for improving cash flow on rental properties, with the largest number of strategies related to financing the rental property. This mini-class covers all the cash flow improving strategies related to financing your rental property.

Check out the video of this class here:

Improving Cash Flow When Financing Your Next Rental Property - Video Recording

In this special mini-class for the Real Estate Financial Planner™ coaching program James covers:

• 88 Ways to Improve Cash Flow from Real Estate Rental Properties including the following...
• Strategies to improve cash flow before getting the loan
• Strategies to improve cash flow by paying upfront instead of financing
• Strategies to improve cash flow by changing/improving the borrower(s)
• Strategies to improve cash flow by improving the relationship with the lender
• Strategies to improve cash flow by changing the amortization schedule with the loan
• Strategies to improve cash flow by changing the loan terms
• Strategies to improve cash flow by improving Private Mortgage Insurance (PMI)
• Strategies to improve cash flow by using other properties you own
• Strategies to improve cash flow by uising non-traditional financing options
• Plus more...

Reduce the Need for Down Payments When Buying Rental Properties

There are two primary ways to deal with down payments when buying rental properties: first you can REDUCE the need for them and second you can focus on ways to PRODUCE the down payment required. In this mini-class, James discusses strategies to reduce the need for down payments when buying rental properties.

Check out the video of this class here:

Reduce the Need for Down Payments When Buying Rental Properties - Video Recording

In this special mini-class for the Real Estate Financial Planner™ coaching program James covers:

• We're not just talking about down payment... but...
• Reduce and Produce
• Will it work for me? Fools will... and intelligent, gritty, resolved people will...
• Minimize price to minimize down payment and some warnings with this strategy
• A discussion of an image from Gary Keller's book The Millionaire Real Estate Investor
• Strong seller's markets
• Nothing down financing options
• Creative financing options
• Plus more...

How Much Down Payment for Investment Property?

Check out the video of this class here:

https://realestatefinancialplanner.com/how-much-down-payment-for-investment-property/

In this special mini-class for the Real Estate Financial Planner™ coaching program James covers:

• The two primary groups of loans for real estate investors...
• How much down payment for an investment property?
• Which loans are good for Nomads™ and house hackers in The Villages?
• The no money down real estate investor loan options.
• What's interesting about hard money loans, private loans and creative financing?
• Plus more...

What does a real estate agent do when you're buying a rental property? What are you use responsbible for? What do each of your other dream team members do?

In this special mini-class for the Real Estate Financial Planner™ coaching program James covers:

• What's the difference between a real estate agent, broker and Realtor?
• A word on local variation from market to market and how to find out exactly what is different in your market.
• The key roles and responsbilities when buying a rental property and who does what with an emphasis on what your real estate agent does.
• A list of additional things you should be concerned on that your real estate agent probably won't do, but that you should do as the owner of a real estate investing business.

Don't wait until after you own your rental property to start optimizing cash flow. In this special recording, James discusses all the strategies for improving cash flow while you're actively searching for the next rental property to buy.

In this special mini-class for the Real Estate Financial Planner™ coaching program James covers:

• Real Estate Agent Selection - Besides all the things that a typical real estate agent might be able to do like help you select a better cash flowing rental property, negotiate a better deal on your behalf, refer you to quality, good value dream team members… your real estate agent may also be able to rebate part of their commission back to you at closing and you could use that money to improve cash flow. One way to improve cash flow with the rebated commission is to buy down your mortgage interest rate.
• Lock/Float Your Mortgage Interest Rate - Lock in your mortgage interest rate while searching for properties to avoid having rates rise while you’re finding your next rental property.
• Search for Less Expensive Properties - Buying less expensive properties and getting the same rent you’d get on higher priced properties can improve cash flow.
• Search for Pretty Properties - Use money you would otherwise use for fixing up properties to buy down the interest rate might result in improved cash flow.
• Search for Seller Concessions - Look for properties where sellers are willing to contribute some money toward your closing costs. You could use their contributions to improve cash flow by buying down the interest rate.
• Search for Creative Financing - Find properties where the terms of the loan aren’t directly dictated by the lender but negotiated between buyer and seller.

This covers one section of the 88 Ways to Improve Cash Flow from Real Estate Rental Properties.