Cash and Financial Strategies for Real Estate Investors: Part 1

Charlie Jewett and Bobby Alford kick off a series on cash flow and investment strategies for real estate investors. Familiarize yourself with the basic concepts and learn about advanced strategies in the subsequent episodes. Who is the real estate investor? If you own a house – regardless of whether you live in it or you are using it as a source of cash flow – you are a real estate investor. A house is the largest asset in people's lives because it appreciates. Most of the things we buy to make our lives comfortable depreciates. Cars, for example, do not have equity because they do not appreciate. Some people just see a home as a place to live, not realizing that leveraging on it can easily be your ticket to early retirement and financial freedom. 

Why invest in real estate?

Aside from realizing a part of the American Dream, owning your home is an enjoyable experience. Creating your own environment and being able to make it the way you want it, as opposed to renting, makes it a fun giant art project. More importantly, it is an asset that appreciates. The pandemic changed the real estate value in different ways and the last 9 to 12 months saw a huge growth in appreciation of the real estate market. Appreciation, simply put, is what we all know as investing: buy it, hold it and wait for the long haul and see its value go up. Learn about different strategies to leverage on real estate appreciation and get the most out of your investments.

Tax savings and depreciation

With real estate, whether you live in it or rent it, fundamentally there's appreciation. On the other hand, depreciation or tax savings comes from the IRS rewarding you for buying a property and is another way that real estate can make you money or provide you advantage. The government allows homeowners to count interest they pay on a loan related to building or purchasing a home against their taxable income, lowering the taxes they owe.

Part 2: Income

Saving money on taxes is a form of income. Reduction of bills is income. Income can be one room in your house rented, buying more units in the same property or buying properties in different locations in different states. A real estate investor is someone who owns any piece of property in any form that may create income or increase in value. And for most of us, it's our primary residence. How can you live for free while maintaining cash flow from your properties? You will know all about house hacking to achieve that financial independence for your early retirement.

We will talk about the different advanced strategies in the next episodes so you can choose and pick what you like. How big a down payment should you make? Should you make a down payment at all? Should you ever do extra payments? Should you do a 15-year fixed or 30? When your house appreciates, what do you do? Is the goal to pay off the house and own it free and clear?

About Charlie Jewett

Charlie Jewett is an author, speaker, recruiter, trainer, consumer advocate and investment advisor from San Diego, CA. As the "Financial Services Whistleblower" Charlie has been trying to change the way that industry professionals and consumers think about retirement since 2005. With considerable years of experience and an array of professional certifications, Charlie focuses on stock market alternatives combined with tax-free retirement income and provides educational materials that help people to create their ideal retirement plan. He is the host of two podcasts, Renovating Retirement  and Target Practice for Advisors, as well as the author of "Renovating Retirement" and "Two Ways to Be Debt Free", both available on Amazon Kindle.

About Bobby Alford

Bobby Alford has walked an unconventional path to becoming the CEO of Renovating Retirement. He spent 10 years in the US Submarine force, both as an officer and enlisted person, earning a degree in nuclear engineering along the way. Bobby then joined corporate America and worked for a Fortune 50 company in operations, finance, and sales management roles. After getting his MBA, he began working with military veterans to improve their retirement options. At that point he found Charlie Jewett and learned how to truly impact a person's financial life using the MERIT model of planning. Bobby joined Charlie and now uses his skills to grow their company toward achieving the goal of creating $1 billion dollars of annual tax-Free money for their clients.

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