Calvera Partners

Secret #19: NOI and Cap Rates are useful, but not that useful. You'd think you could very easily figure out what to pay for a property: Using the NOI, decide what the right cap rate is, given what you'll pay for financing, and you're done. There are some reasons why that doesn't work. - In the absolute, a cap rate doesn't tell you much. You need to know the cap rates in that neighborhood for similar properties and what cap rates (yields) are for alternative investments. - The interest rate you'll have to pay for a mortgage on a property makes a big difference in what you can pay for it. - How you feel about the region, the neighborhood, and even the block the property is on is key. You can pay more for the specific property you believe in. For commercial (not residential) property, the creditworthiness of the tenant could be a major factor, too. If you're interested in learning more about how Calvera helps retirement-oriented investors add real estate to their portfolio, you have two options: Sign up for our newsletter: --> ?? GO HERE: https://lnkd.in/gFc_HTEq Schedule a call with Calvera: --> ?? GO HERE: https://bit.ly/4hV2awO #investing #retirement #cashflow #multifamily #realestate

Secret #18: Don't think real estate. Think arithmetic. Success in real estate is first about arithmetic. You don't have to do anything more complicated than long division. None of it is more difficult than the math you learned in fourth grade. It's not difficult, but you have to do it. You only need a handful of numbers to decide on a prospective investment. More, though, than we can describe here. Here are the two most important ones in our view. Net Operating Income (NOI): This is the amount of money your investment returns to you in a year. You get it by totaling up all the money the property collects (rents, laundry, late fees, etc.) less all the costs you pay out to manage the property, including maintenance, legal fees, etc. It does NOT include any mortgage or financing costs, or our favorite non-cash expenses like depreciation and amortization. Cap Rate (Capitalization Rate): This is the NOI divided by the amount you paid for the property or its current value. If you're interested in learning more about how Calvera helps retirement-oriented investors add real estate to their portfolio, you have two options: Sign up for our newsletter: --> ?? GO HERE: https://lnkd.in/gFc_HTEq Schedule a call with Calvera: --> ?? GO HERE: https://bit.ly/4hV2awO #investing #retirement #cashflow #multifamily #realestate

Secret #17: Operating leverage can improve your cash flow. You know about "leverage" from Secret #8--borrowing money to buy a bigger property. There's another way you get extra cash flow oomph out of your real estate: "operating leverage." Whether it's inflation or a neighborhood that gets more popular, rents often go up over time. Assuming you're careful (or hire good managers), you can manage operating expenses to rise at a slower rate than rents, so you can get greater cash flow from your real estate over time. Real estate gives you the ability to grow cash flow with intelligent operations and improve on an already superior return. If you're interested in learning more about how Calvera helps retirement-oriented investors add real estate to their portfolio, you have two options: Sign up for our newsletter: --> ?? GO HERE: https://lnkd.in/gFc_HTEq Schedule a call with Calvera: --> ?? GO HERE: https://bit.ly/4hV2awO #investing #retirement #cashflow #multifamily #realestate

Secret #16: Real estate can out-dividend dividend stocks. We like dividend stocks. These stocks can appreciate as well as pay out. But all your stock dividends are taxed. Then you reinvest after-tax dollars. In comparison, all or part of your real estate cash flow is shielded from tax by depreciation and amortization. You can reinvest all the untaxed cash you get...or spend it where you want. If you're interested in learning more about how Calvera helps retirement-oriented investors add real estate to their portfolio, you have two options: Sign up for our newsletter: --> ?? GO HERE: https://lnkd.in/gFc_HTEq Schedule a call with Calvera: --> ?? GO HERE: https://bit.ly/4hV2awO #investing #retirement #cashflow #multifamily #realestate

Secret #15: Real estate is your secret weapon in the drive to diversification. Virtually all investment advisors agree that you should diversify your investment portfolio as much as possible. The hidden truth is that stocks and bonds don't diversify you that much. Real estate can break your nest egg's connection to market volatility, provide an inflation hedge, and put you in an investment not available to investors overly concerned with liquidity. If you're interested in learning more about how Calvera helps retirement-oriented investors add real estate to their portfolio, you have two options: Sign up for our newsletter: --> ?? GO HERE: https://lnkd.in/gFc_HTEq Schedule a call with Calvera: --> ?? GO HERE: https://bit.ly/4hV2awO #investing #retirement #cashflow #multifamily #realestate

Secret #14: Refinancing: It's your gateway to property accumulation and higher yields. Let's assume you get it right. Your property's cash flow increases, and its value rises accordingly. Over a few years, you build up significant equity in your property. In other words, it's worth more than you paid for it. The higher appraisal value of your property can free you to refinance the loan you took to buy the property. After you've done so, you've got a couple options. 1. Buy more. You can use the money you get from the new, bigger loan to buy another property or make another investment or enjoy life. You can do this over and over as you grow your portfolio. 2. Stand pat and enjoy. If interest rates have dropped, you can refinance a loan of the same amount at a lower interest rate. This increases your cash flow without a rent increase. If you're interested in learning more about how Calvera helps retirement-oriented investors add real estate to their portfolio, you have two options: Sign up for our newsletter: --> ?? GO HERE: https://lnkd.in/gFc_HTEq Schedule a call with Calvera: --> ?? GO HERE: https://bit.ly/4hV2awO #investing #retirement #cashflow #multifamily #realestate

Secret #13: Real estate can be a stress reducer. Stock brokers tell us not to look too closely at the daily fluctuations in the value of our stocks. We're in the market for the long term, after all. But do any of us do that? Nope. Stock prices go up and down all the time. It's called volatility, and it disorients some investors. Stock investors self-harm because of stress, selling all their shares at the market's bottom, then buying back at the top. A real estate investment, while producing the equivalent of dividends ("cash flow" you can spend), isn't listed on any exchange. Its success doesn't hinge on what a bunch of uninformed people think it's worth on a certain day. Owning cash-flow-positive real estate can be relaxing. If you're interested in learning more about how Calvera helps retirement-oriented investors add real estate to their portfolio, you have two options: Sign up for our newsletter: --> ?? GO HERE: https://lnkd.in/gFc_HTEq Schedule a call with Calvera: --> ?? GO HERE: https://bit.ly/4hV2awO #investing #retirement #cashflow #multifamily #realestate

Secret #12: Unlike other investments, you already know how real estate works. I dare you: Try to understand the underlying collateral in a bond investment or the risk you're assuming when you buy an annuity. Many investments sold to you are difficult to understand. But you already know how real estate works. You sign an agreement with a tenant and promise them "quiet enjoyment" of their space for a period of time. You collect monthly rents and pay expenses like utilities, property management fees, repairs and maintenance, insurance, and property taxes. What's left is yours, augmented by valuable tax benefits. You can tour and inspect a property, review the rent roll, and make your own decision on whether you like the location. Thoughtful investment decision making is something YOU CAN DO in real estate. If you're interested in learning more about how Calvera helps retirement-oriented investors add real estate to their portfolio, you have two options: Sign up for our newsletter: --> ?? GO HERE: https://lnkd.in/gFc_HTEq Schedule a call with Calvera: --> ?? GO HERE: https://bit.ly/4hV2awO #investing #retirement #cashflow #multifamily #realestate

Secret #11: Unlike with your broker, your general partner's interests and yours are aligned. When's the last time your broker said, "I'll wait to get paid UNTIL I generate a good return for you"? If you're investing in a well-structured real estate vehicle, the sponsor (or general partner) you choose is highly incentivized to grow cash flow and property value. Generally, sponsors get most of their income after investors receive a pre-set annual return plus their original investment back. Just make sure the sponsor you've chosen is transparent with their fee structure. If you're interested in learning more about how Calvera helps retirement-oriented investors add real estate to their portfolio, you have two options: Sign up for our newsletter: --> ?? GO HERE: https://lnkd.in/gFc_HTEq Schedule a call with Calvera: --> ?? GO HERE: https://bit.ly/4hV2awO #investing #retirement #cashflow #multifamily #realestate

Secret #10: Real estate can work better than the stock and bond markets during periods of inflation. In periods of inflation when the basics like gas, groceries (eggs), and wages increase in cost, rents go up, too. In comparison, the value of your cash goes down and your locked-in bond investments tend to drop, but real estate cash flow and property values can increase. If you're interested in learning more about how Calvera helps retirement-oriented investors add real estate to their portfolio, you have two options: Sign up for our newsletter: --> ?? GO HERE: https://lnkd.in/gFc_HTEq Schedule a call with Calvera: --> ?? GO HERE: https://bit.ly/4hV2awO #investing #retirement #cashflow #multifamily #realestate