Intro to Analyzing Rental Income Properties

A quick overview of how this Jumpstart section will work and what you'll get out of it!

You can download this model for free here and follow along in the Jumpstart section. Try before you buy!

https://drive.google.com/file/d/0B3ZhPPeH41ORejFRU1hjNEQ3X2M/view

Learn and understand the key reasons of why we do investment analysis and how it will help you become a better investor.

Using the attached Excel model and Zillow.com listings, we do some quick market research on rental income properties.

Demonstrating how to interpret the results from the quick market research exercise. 

Using the attached back of the envelope model, we evaluate a rental income property that you've just found.

Whoa, you've already learned how to evaluate a rental income property (at a high level).  Here's what to expect in the rest of the course.

For those of you who want to explore what the BOE model would look like on an interest only (rather than an amortized) loan.

The first stage in the Investment Process - Originations.
The who, what and where of deal sourcing.
Who will bring you deals, what are you looking to invest in and where are you looking to invest?

This Analysis phase of the Investment Process is the emphasis of the course. It is detailed further in the examples in the latter part of the course.

This lecture will tell you why analysis is so important and how it could save you precious time and money.

After you have completed the analysis and modeled out the return potential for your investment, you must take the time and care to validate and verify all the key assumptions that could impact your investment.

Financing and Closing is the stage where you assure all the necessary funds are in place to make your deal happen.

In this lecture you will learn about the main sources of funding involved in real estate investments.

The project doesn't end after closing, now it's time to increase the value of your asset.

In this lecture you will learn the key considerations for construction and rehab and how to work with contractors.

After construction is complete, you then want to stabilize the asset (aka get it to the point where it would be most marketable for a sale).  

Learn the various types of stabilization depending on the nature of the type of investment. 

In the final stage of the investment process, this is where you sell (or exit) from the asset and actually realize your returns (or losses).  

Too Long Didn't Watch (TLDW) Summary of the Investment Process Section.

Quiz your understanding of the investment process.

Quick summary of the many topics covered in this section

In this lecture you what is discounted cash flow analysis and why investors use this technique

What is the discount rate and how do you determine the right one to use for your NPV calculation?

Demonstration of the Net Present Value calculations through examples using Excel

Understand what the Internal Rate of Return (IRR) is and how to use it

Demonstration of the Internal Rate of Return (IRR) calculations by comparing sample investment cash flows that appear very similar but give different IRR results

Learn what the Cash Multiple is and why it's often used alongside the IRR

So which measure should you use?  Learn why you need to use at least two measures in order to properly measure both the efficiency and magnitude of investment returns

Demonstration of why you should use multiple measures of returns using examples in Excel

How to calculate the Terminal Value of an income property that you plan to hold onto indefinitely

Learn what yields and cap rates mean and how they apply to income producing properties

Too Long Didn't Watch (TLDW) Summary of the Measures of Return section

Test your understanding of the topics covered in the Measures of Return section

Overview of the topics to be covered in this section around how debt impacts your measures of return

Learn the difference between interest only vs fully amortized loans

A look at the amortization calculator built into every investment model in this course

This is a new revised Amortization calculator that shows what happens if you made extra monthly payments towards principal each month.  

Understand how taking on debt could impact your investment

Too Long Didn't Watch (TLDW) summary of the Impact from Debt section

Test your understanding of debt as it relates to investment analysis.

Overview of the topics to be covered in this section

In this lecture we'll explore market and external considerations that could affect your investment analysis

In this lecture, we'll discuss property specific considerations that could affect your investment analysis

In this lecture, we'll discuss deal specific considerations that could affect your investment analysis

In this lecture, we'll discuss other considerations that could affect your investment analysis

Too Long Didn't Watch (TLDW) summary of all the investment considerations discussed in this section.

Test your knowledge of the investment considerations covered in this section

Overview of the three broad investment strategies to be covered in this section

In this lecture, we explore the characteristics of the core investment strategy

In this lecture, we explore the characteristics of the opportunistic investment strategy

In this lecture, we look at how the value added investment strategy falls somewhere in between core and opportunistic strategies

Too Long Didn't Watch (TLDW) summary of the topics in this section reviewing the key points on the investment strategies

Test your understanding of our discussion on investment strategies

You've learned a lot of real estate investment analysis foundations.  Are you ready to apply those to real world examples?

Too Long Didn't Watch Summary for Case Studies

Overview of the topics to be covered in this section on Fix & Flip investment analysis

When flipping a property you have many variables to conside

In this lecture,we'll review the detailed financial analysis model and how each assumption works.

In this lecture, we identify a specific fix and flip opportunity to evaluate

In this lecture, we go through the full analysis using the investment model included

If you want to dive deep into the formulas, you can look at the unlocked file here (note, some worksheets are still locked but those are not relevant to the calculations).

Overview of the topics to be covered in this section on rental income property investment analysis

When renting out a property you have many variables to consider.

In this lecture, we'll review the detailed financial analysis model and how each assumption works.

In this lecture, we identify a specific rental income property opportunity to evaluate

Congrats on finishing this introductory course.  Listen in for more advanced topics that are covered in my other course.

Follow along and see how I build the Back of the Envelope model from scratch.  Part 1 of 2

Follow along and see how I build the Back of the Envelope model from scratch.  Part 2 of 2

This is a "BETA" Model--meaning I'm still having students test and try out.  Building robust financial models like these aren't easy. Even though I've been doing them for a long time, I can still make errors.  Use at your own risk/discretion. Only providing it here for students to try out while I work out any kinks and before I record new videos for it.

Overview of some useful Udemy features like speeding up lectures, bookmarking, downloading files, and how to to ask questions to the Q&A forum.