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How To Value Rental Property Like The Pros - Advanced Topics

3 hours on-demand video

$ 12.99

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Brief Introduction

Supercharge your ability to value deals!

Description

Make Valuing Real Estate Your Superpower!

With simple video lessons that will teach you to think like a professional investor.

You’ll gain something no matter what kind of background or real estate experience you have right now.

For Decades, the World’s Smartest Investors Have Been Valuing Deals Differently Than You…

Cap rate, cash-on-cash return, and a few other simple metrics have become the de facto standards used by new and self-taught investors. They’re important, but the professional investors know that they should not be relied upon exclusively.

In fact, most professional investors do a completely different analysis long before they even look at cap rate, cash-on-cash-return, and the like. And that’s what you’ll learn in this course — the analysis the pros rely on the most!

If your real estate education began with a book from barnes and noble, a blog article, or webinar, I can almost guarantee that you weren’t exposed to this incredible analysis. And it’s not that hard to learn or implement… if you’re taught properly. Believe it!

Get the first lesson for free in the introduction video at the top of this page and read on below for more great reasons to learn with us!

HERE'S WHAT YOU'LL GET OUT OF THIS COURSE:

You'll learn to value deals before, during, and after an economic recession!

Economic booms… economic busts… recessions… recoveries…

And I guess we can now add “pandemics” to this list…

If you’ve been paying attention, you’ll notice that the world is constantly changing and nothing ever stays the same.

The problem with this is that the theory behind cap rate, cash-on-cash return and other simple calculations commonly taught in best selling real estate books depends on a static economy where nothing changes.

In this course, we’ll show you how to account for potential shifts in the economy and convert them into dollars and cents!

YOU'LL (FINALLY) LEARN HOW TO VALUE RENOVATIONS!

Investors talk about renovations all the time, but very few can actually show you the math they did to determine whether the renovation even makes sense in the first place.

Look… Any knucklehead can pay to have work done. The part that most investors miss is making sure that they receive a return on their investment. If there is no return (or financial benefit), you shouldn’t do the renovation!

Follow our process for valuing renovations and the decision to renovate will be chosen for you.

YOU'LL (HOPEFULLY) STOP UNDERESTIMATING OPERATING EXPENSES.

Underestimating expenses is one of the biggest reasons (if not THE biggest reason) people overpay for property.

Face it — most sellers are not going to give you the complete picture of how much operating expenses actually are. That’s because lower operating expenses give the impression of higher profits… And higher perceived profits translate into higher sales prices.

The sad truth is that the seller, absolutely, has an incentive to make buyers believe that operating expenses are lower than they actually are.

Whether it’s an honest oversight or an intentional misrepresentation, there are actions you can take to help protect yourself from underestimating expenses.

YOU'LL UNDERSTAND WHY SMALL DEALS ARE RISKIER THAN BIG DEALS...

Have you ever looked at a big deal with more than 150 apartment units? Most investors reading this would probably say no…

In actuality, you’d need to look at a bunch of big properties marketed by some of the savviest brokers in the business to pick up some of the perspectives I share with you in the course.

Prepare to be amazed… and perhaps scared crapless.

SO... WHO ARE THESE PROS YOU KEEP TELLING ME ABOUT?

We define pros as people whose full time job is to invest other people’s money.

Believe it or not, the best investors in the world are typically employees (highly paid) and most do not own any real estate themselves. They receive a salary and a bonus tied to the return they were able to generate for their employer throughout the year. The reason they don’t often own real estate themselves is because their employers would consider it a conflict of interest.

Their education typically starts out with business school and many pursue advanced degrees, often winding up with an MBA or Masters in Finance.

After graduation, almost through sheer luck, they score a highly desirable and extremely competitive position at an investment bank, endowment, pension fund, insurance company, capital markets brokerage, or other institution that has (or raised) hundreds of millions (or billions) of dollars and invest a portion of it in real estate.

Their first job is often that of a financial analyst, with many working 70-80+ hour workweeks. Day in and day out, they analyze markets and value deals. As they progress through their career, they spend less time analyzing and more time reviewing, managing, and mentoring junior team members, passing along their expertise to their team members so they can focus more on putting deals and partnerships together, or perhaps raising more money to pursue additional investments with.

These professional investors are responsible for making decisions on some of the largest real estate transactions in the world. And unbeknownst to you, pros may already be investing your money if your retirement portfolio includes REITS and other companies that own a lot of real estate.

In addition, many of the world’s wealthiest people (and families) employ pros to invest their money because, often, they are just better at it.

If you are taking this course, there is a strong likelihood that you probably can’t afford to hire a professional real estate investor to manage your money (nor would it probably make sense).

But… there is nothing stopping you from learning some of the basic investment concepts professional investors know. And fortunately for you, you have this course!

In the very first lecture, you will be introduced to one of the most important analyses professional investors perform — the discounted cash flow analysis. If you are investing your own money, there is a strong likelihood you’ve never been exposed to it.

The jargony name (discounted cash flow analysis) makes it sound a bit scary, but rest assured it’s not hard to learn or work with. We are really good at teaching this stuff to people without finance backgrounds and we’ll walk you step by step through it. If anything still doesn’t make sense, reach out to us and we’ll try to fill in any gaps in clarity.

THE TRUE VALUE OF THIS COURSE:

This might sound a bit “salesy” or “gimmicky,” but let’s have some fun here.

How much could someone spend to attain the information presented in this course?

Assuming you read the section above this (“Who are the pros”), the people that use this knowledge on a day-to-day basis have high paying and extremely competitive jobs.

The employers that hire these people tend to recruit those that they perceive to be the “best of the best,” even though most people could succeed in these roles if trained effectively.

The perceived “best of the best” usually comes in the form of an Ivy League college education and perhaps a masters degree from a highly ranked MBA program.

The reason these company’s recruit this way is less about a person’s skill and ability and more about having a strong sounding team to make it easier to raise money and win new clients.

Another way to get these jobs is through nepotism and luck — neither of which you have control over.

On the job is where most of the knowledge we present in this course is gained. Once gained, it becomes part of your investment process and you repeat it over and over again when you are looking to acquire a property.

So how much would it cost you to get this knowledge on the job? Well, it depends on whether we are talking about the investment of time, money, or both…

Ultimately, though, it probably looks something like this:

As a kid, dedicate you life to school/academics so you can get into an Ivy League school.
Dedicate your life to college and stay at the top of your class to be an attractive job candidate afterwards (or to get into a good MBA program).
If you don't get one of the analyst jobs right out of college, go back to school and get an MBA (another $60,000 per year?).
Once (and if) you get the job, spend 80+ hours per week working like a dog under more experienced analysts and finally you get the knowledge presented here.

Sound exhausting? Well, it is…

And it’s expensive…

And, quite frankly, I’m not sure that the return on investment is really there for all the time and money spent getting there…

Skipping the investment of time all together, you could spend upwards of $360,000 to get your bachelors degree and an MBA from a great school. And even then, it’s an upward battle trying to get yourself an attractive position with professional investors. And if you do get it, you learn and gain confidence doing some of the analyses we teach you here.

But instead of asking you for $360,000, eight years of your life, and your first born, you can learn the pros’ killer analysis from our course for nearly 100% off what you would normally have to pay to get this knowledge — It’s a total steal!

This section is obviously a bit ridiculous, but you need to know how rare and valuable this knowledge is.

TRYING TO RAISE MONEY?

If you are looking for someone to invest in deals with you or are trying to put together a syndication, the analysis we teach you to do here will take you much farther than any other type of analysis out there.

When you present this analysis to potential investors, you demonstrate some serious expertise:

Clear, logical reasons for the amount of cash flow you'll pull out of the deal during the time you own it.
Take into account the entire lifecycle of the investment, including the eventual sale of the property.
Clearly explain how much additional value you'll create through renovating units and how that'll impact returns.

The investors you speak to will respond to you differently. They might not agree with you, but when they don’t, your conversation will be productive and you’ll debate things like market rents, rent growth, construction costs, inflation, renovation potential and other quantifiable things.

You’ll debate factors that have a real, measurable impact on the value of the deal instead of debating the specific method that was used to come up with the price or engaging in a battle of wills.

In short, people will think you know what you are talking about and you can clearly communicate the opportunity.

Professional investors raise money all the time. The analysis we teach you to perform here is the key element they present to those they are trying to raise money from. In many cases, it is the only analysis the people they are trying to raise money from want to see.

Present this analysis and you’ll be amazed at how others will respond to you.

PROS LOVE THIS ANALYSIS BECAUSE IT OFTEN LEADS TO:

More Confidence

Learn a methodical process that makes sense.

No more crossing your fingers and hoping those simple rules of thumb you learned will get you everything you ever wanted out of the investment.

Less Risk

Gain deep, granular insight into the major financial aspects of a deal. Better understand the entire lifecycle of the investment, from purchase to sale.

Learn to spot missing and underestimated expenses in seller’s financials.

Better Outcomes

There’s a reason why the smartest investors in the world know and implement the topics you will learn here.

While we can’t guarantee a positive outcome (nobody can) we strongly believe that our material is your best shot at making money in real estate.

Requirements

Requirements
Read one "beginner" real estate book.
Look at a deal or two in your market (i.e. request info from a broker and tour).

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