• Home
  • Episodes
    • 000: Introduction
    • 001: 3 Ways to Make Money in Real Estate / 1 of 3 Big Decisions for Strategy
    • 002: Part 2 of 3 Big Decisions for Strategy : Cash Flow or Capital Gains?
    • 003: Part 3 of 3 Big Decisions for Strategy: Understanding Property Classes
    • 004: Part 1 of 3 on The Basics: Basic Financial Stuff
    • 005: Part 2 of 3 on The Basics: Basic Property Stuff
    • 006: Part 3 of 3 on The Basics: Basic Management Stuff
    • 007: Investor Interview: Josh Davis
    • 008: Part 1 of 2 on Property Valuations
    • 009: Part 2 of 2 on Property Valuations
    • 010: Will I Make Any Money? Real Numbers & Self Sabotage
    • 011: Using A Skills & Time Assessment To Choose a Property & Plan Your Project
    • 012: Understanding Contracts as an Investor
    • 013: Investor Interview: Bryan & Erin Waits
    • 014: Understanding Organizational and Financial Contracts
    • 015: Part 1 of 2 on Important Points of Leases & Property Management Contracts
    • 016: Part 2 of 2 on Important Points of Leases & Property Management Contracts
    • 017: Investor Interview: Nick Hayes
    • 018: 10 Bits of Wisdom
    • 019: Auburn and Airbnb or VRBO
    • 020: My First 6 Months: Interview with John Edwards
    • 021: My First 6 Months: Interview with Derek Jackson
    • 022: City Council Update: An Interview with Beth Witten
    • 023: Mortgage Broker Interview: An Interview with Barry & Gleason Jones 1/2
    • 024: Mortgage Broker Interview: An Interview with Barry & Gleason Jones 2/2
    • 025: Timeline of Your Investing Journey & Cash on Cash Return
    • 026: Auburn and Coronavirus
    • 027: Future Pacing & Practical Landlording
    • 028: Investment Property Insurance with Kathy Powell
    • 029: Inside a Rehab Project: Rossmere Condos: Part 1
    • 030: Investor Interview: Brent Beard
    • 031: My 10 Biggest Mistakes
    • 032: 2020 Year in Review
    • 033: Looking Ahead to 2021
    • 034: Andrew Parmer 1 of 2
    • 035: Andrew Parmer 2 of 2
    • 036: My Favorite Real Estate Books
    • 037: Jim Andrews 1 of 2
    • 038: Jim Andrews 2 of 2
    • 039: Mayor Ron Anders
    • 040: Russell Balch 1 of 2
    • 041: Russell Balch 2 of 2
    • 042: 5 Year Plans
    • 043: Catastrophe of Success
    • 044: May 2022 Update & Current Trends in Auburn Real Estate
  • Work with Me
  • Our Brokerage
  • Contact
  • About
Auburn Investment Properties Podcast | A Conversation about Real Estate Investing in Auburn, Alabama
  • Home
  • Episodes
    • 000: Introduction
    • 001: 3 Ways to Make Money in Real Estate / 1 of 3 Big Decisions for Strategy
    • 002: Part 2 of 3 Big Decisions for Strategy : Cash Flow or Capital Gains?
    • 003: Part 3 of 3 Big Decisions for Strategy: Understanding Property Classes
    • 004: Part 1 of 3 on The Basics: Basic Financial Stuff
    • 005: Part 2 of 3 on The Basics: Basic Property Stuff
    • 006: Part 3 of 3 on The Basics: Basic Management Stuff
    • 007: Investor Interview: Josh Davis
    • 008: Part 1 of 2 on Property Valuations
    • 009: Part 2 of 2 on Property Valuations
    • 010: Will I Make Any Money? Real Numbers & Self Sabotage
    • 011: Using A Skills & Time Assessment To Choose a Property & Plan Your Project
    • 012: Understanding Contracts as an Investor
    • 013: Investor Interview: Bryan & Erin Waits
    • 014: Understanding Organizational and Financial Contracts
    • 015: Part 1 of 2 on Important Points of Leases & Property Management Contracts
    • 016: Part 2 of 2 on Important Points of Leases & Property Management Contracts
    • 017: Investor Interview: Nick Hayes
    • 018: 10 Bits of Wisdom
    • 019: Auburn and Airbnb or VRBO
    • 020: My First 6 Months: Interview with John Edwards
    • 021: My First 6 Months: Interview with Derek Jackson
    • 022: City Council Update: An Interview with Beth Witten
    • 023: Mortgage Broker Interview: An Interview with Barry & Gleason Jones 1/2
    • 024: Mortgage Broker Interview: An Interview with Barry & Gleason Jones 2/2
    • 025: Timeline of Your Investing Journey & Cash on Cash Return
    • 026: Auburn and Coronavirus
    • 027: Future Pacing & Practical Landlording
    • 028: Investment Property Insurance with Kathy Powell
    • 029: Inside a Rehab Project: Rossmere Condos: Part 1
    • 030: Investor Interview: Brent Beard
    • 031: My 10 Biggest Mistakes
    • 032: 2020 Year in Review
    • 033: Looking Ahead to 2021
    • 034: Andrew Parmer 1 of 2
    • 035: Andrew Parmer 2 of 2
    • 036: My Favorite Real Estate Books
    • 037: Jim Andrews 1 of 2
    • 038: Jim Andrews 2 of 2
    • 039: Mayor Ron Anders
    • 040: Russell Balch 1 of 2
    • 041: Russell Balch 2 of 2
    • 042: 5 Year Plans
    • 043: Catastrophe of Success
    • 044: May 2022 Update & Current Trends in Auburn Real Estate
  • Work with Me
  • Our Brokerage
  • Contact
  • About

EPISODE 025:
The Timeline of Your Investing Journey & Introducing "Cash on Cash Return"

Categories:
Strategy & Tips
Description & Show Notes:
In this episode, we'll revisit the 3 ways to make money in Real Estate, and then take a look at the timeline for a typical Real Estate investor.  We'll start at your first purchase and then your next purchase, and why it goes faster the second time around, and then we'll look further ahead and see where you might end up 5-10 years down the road when  your role might change from "deal hunter" to "asset manager" or even the coordinator of a group of other investors.  

Tips & Takeaways:
We'll look at how Warren Buffet makes a 50% return each year from just one of his investments, and how we can compare that to our returns as Real Estate Investors.  We'll also look at the hidden metric of "Cash on Cash Return", which is often a better way to evaluate your Real Estate investments and especially how to find value in doing smart renovations.  

3 Ways to Make Money in Real Estate:
  1. Surplus Cash Flow from the Rent
  2. Increase in Sales Price (or Appraisal Value)
  3. Paying Down a Loan with Someone Else's Money

​Analyzing Your Cash on Cash Return:
  • Add up all of your net income (surplus rent) for the year
  • Divide that number into the amount you put into the property for your down payment
  • That number is your Cash on Cash Return
  • You will probably have a much higher return than you think!
  • Can often be greatly improved (doubled?) with smart upgrades
 

Links from this episode:​​
  • Work with Me
  • ​Real Estate Brokerage Services: AuburnInvestmentProperties.com
  • Real Estate Investor Coaching: BetterREI.com​
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Hosted by:
Chris Kearns

- Investor, Broker
- 2x Auburn Grad
Brought to you by:
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Auburn Investment Properties  | 852 N. Dean Road, Suite 100, Auburn, AL 36830

Website Design & Hosting by Local Profits Group
  • Home
  • Episodes
    • 000: Introduction
    • 001: 3 Ways to Make Money in Real Estate / 1 of 3 Big Decisions for Strategy
    • 002: Part 2 of 3 Big Decisions for Strategy : Cash Flow or Capital Gains?
    • 003: Part 3 of 3 Big Decisions for Strategy: Understanding Property Classes
    • 004: Part 1 of 3 on The Basics: Basic Financial Stuff
    • 005: Part 2 of 3 on The Basics: Basic Property Stuff
    • 006: Part 3 of 3 on The Basics: Basic Management Stuff
    • 007: Investor Interview: Josh Davis
    • 008: Part 1 of 2 on Property Valuations
    • 009: Part 2 of 2 on Property Valuations
    • 010: Will I Make Any Money? Real Numbers & Self Sabotage
    • 011: Using A Skills & Time Assessment To Choose a Property & Plan Your Project
    • 012: Understanding Contracts as an Investor
    • 013: Investor Interview: Bryan & Erin Waits
    • 014: Understanding Organizational and Financial Contracts
    • 015: Part 1 of 2 on Important Points of Leases & Property Management Contracts
    • 016: Part 2 of 2 on Important Points of Leases & Property Management Contracts
    • 017: Investor Interview: Nick Hayes
    • 018: 10 Bits of Wisdom
    • 019: Auburn and Airbnb or VRBO
    • 020: My First 6 Months: Interview with John Edwards
    • 021: My First 6 Months: Interview with Derek Jackson
    • 022: City Council Update: An Interview with Beth Witten
    • 023: Mortgage Broker Interview: An Interview with Barry & Gleason Jones 1/2
    • 024: Mortgage Broker Interview: An Interview with Barry & Gleason Jones 2/2
    • 025: Timeline of Your Investing Journey & Cash on Cash Return
    • 026: Auburn and Coronavirus
    • 027: Future Pacing & Practical Landlording
    • 028: Investment Property Insurance with Kathy Powell
    • 029: Inside a Rehab Project: Rossmere Condos: Part 1
    • 030: Investor Interview: Brent Beard
    • 031: My 10 Biggest Mistakes
    • 032: 2020 Year in Review
    • 033: Looking Ahead to 2021
    • 034: Andrew Parmer 1 of 2
    • 035: Andrew Parmer 2 of 2
    • 036: My Favorite Real Estate Books
    • 037: Jim Andrews 1 of 2
    • 038: Jim Andrews 2 of 2
    • 039: Mayor Ron Anders
    • 040: Russell Balch 1 of 2
    • 041: Russell Balch 2 of 2
    • 042: 5 Year Plans
    • 043: Catastrophe of Success
    • 044: May 2022 Update & Current Trends in Auburn Real Estate
  • Work with Me
  • Our Brokerage
  • Contact
  • About