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308: Rookie Reply: Don’t Chase Cash Flow! Use THIS Metric to Analyze Your Deals

308: Rookie Reply: Don’t Chase Cash Flow! Use THIS Metric to Analyze Your Deals

FromReal Estate Rookie


308: Rookie Reply: Don’t Chase Cash Flow! Use THIS Metric to Analyze Your Deals

FromReal Estate Rookie

ratings:
Length:
46 minutes
Released:
Jul 29, 2023
Format:
Podcast episode

Description

How important is cash flow when analyzing real estate deals? Many rookies zero in on this familiar figure when crunching the numbers, but there’s another metric that is FAR more important: cash-on-cash return. This simple but powerful equation can help you determine whether an investment property is worth buying!
Welcome to another Rookie Reply! Many rookies struggle to analyze deals when starting out. Fortunately, Ashley and Tony are here to show you exactly how to calculate your cash-on-cash return on a property. They discuss when to use lines of credit to help fund deals, as well as how to pitch seller financing options that make sense for both sides. They also talk about the home appraisal process and, finally, whether an offer on a property can ever be TOO low!
If you want Ashley and Tony to answer a real estate question, you can submit a question here, post in the Real Estate Rookie Facebook Group, or call us at the Rookie Request Line (1-888-5-ROOKIE).
In This Episode We Cover
Why you should use cash-on-cash return over cash flow when analyzing deals
How low is TOO low when making an offer on a property
When it makes sense to use a line of credit for a down payment
The purpose of appraisals and when you might need to order one
How to effectively pitch seller financing options so both sides walk away with a win
And So Much More!
Links from the Show
Find an Agent
Find a Lender
Ashley's BiggerPockets Profile
Ashley's Instagram
Tony's BiggerPockets Profile
Tony's Instagram
Real Estate Rookie Facebook Group
Join BiggerPockets for FREE
Submit Your Real Estate Rookie Question!
Use the BiggerPockets Investment Calculators to Analyze Your Deals
Using Lines of Credit to Kickstart Your Investing Career

Check the full show notes here: https://www.biggerpockets.com/blog/rookie-308
Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email: advertise@biggerpockets.com
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Released:
Jul 29, 2023
Format:
Podcast episode

Titles in the series (100)

Ready to build your real estate empire… but not sure where to begin?Think of us as your personal trainer.From detailed breakdowns of real-world deals… to one-on-one coaching sessions and a warm, welcoming community… hosts Ashley Kehr and Tony J Robinson bring on a wide range of guests to tackle the “newbie” questions you've wondered about but might be afraid to ask.Looking to 10X your real estate investing business this year? This show isn’t for you.Looking for your first, second, or third deal -- or envisioning a more modest portfolio? Step right up. Every Wednesday, we’ll arm you with the tips, tools, and roadmaps you'll need as you embark on your journey toward financial freedom.