How to Analyze a Real Estate Deal

Investing in real estate historically has been a tried-and-true method of building wealth over the long-run, if you have the right wherewithal and mentality to do it – Let's face it, it takes work. However, as with any type of investment, investing in real estate has its own set of risks. Without proper analysis, you can lose a lot of money even if you accept what looked like a great deal. Or, you might be generating minimal cash flow that could have been a lot more cash flow if you were better prepared when analyzing your real estate deals. In this episode, we show you how to analyze a real estate deal and compare it with other investment opportunities. More specifically, I discuss: Real estate is a numbers game Some of the risks involved with real estate investing The "4 Return Components of Rental Real Estate" The potential tax benefits of investing in real estate Analyzing a real estate deal Using your analysis to help you make decisions Resources: Access Show Notes and Sign Up for the Retired·ish Newsletter HERE Free Retirement Jump-Start Analysis  Ask Cameron A Question!   Key moments are: 00:00 Real estate investing has inherent uncontrollable risks 04:07 Critical components of real estate investment analysis 07:25 Hypothetical 20% return on property investment 11:26 Consult a tax advisor for potential write-offs 14:17 Avoid negative cash flow with proper monitoring 18:27 Using analysis for hypothetical $650,000 inherited property 21:36 Low rate of return, mortgage doesn't matter 23:14 Conservative 4% annual appreciation yields $26,000 27:26 LPL Financial offers advisory services, consult professional 28:57 Municipal bonds tax free, consult advisor, no guarantees