Episode #308
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: cashoncash 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 cashoncash 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 post in the Real Estate Rookie Facebook Group, call us at the Rookie Request Line (18885ROOKIE), or click here: https://www.biggerpockets.com/reply?u...'>https://www.biggerpockets.com/reply?u...
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Join the Real Estate Rookie Facebook Group:
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Submit Your Real Estate Rookie Question!
https://www.biggerpockets.com/reply?u...'>https://www.biggerpockets.com/reply?u...
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Use the BiggerPockets Investment Calculators to Analyze Your Deals:
https://www.biggerpockets.com/investm...
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Using Lines of Credit to Kickstart Your Investing Career:
https://www.biggerpockets.com/blog/ro...
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Connect with Ashley and Tony on BiggerPockets:
Ashley: https://www.biggerpockets.com/users/e...
Tony: https://www.biggerpockets.com/users/t...
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Shoot Ashley and Tony a Question on Instagram!
@wealthfromrentals or / wealthfromrentals
@tonyjrobinson or / tonyjrobinson
00:00 Intro
03:44 How Low Is TOO Low?
12:28 Cash Flow Vs. CashonCash Return
16:45 Using a Line of Credit
27:57 Appraisals 101
36:42 How to Pitch Seller Financing
42:42 Send Us Your Question!