In this episode, Kevin and Steve unpack the “magic” behind Moneyball Real Estate and show why real success in real estate isn’t mystical, random, or reserved for the lucky. It’s formulaic. They start with a hilarious magic show story (involving a penny, a toilet paper cannon, and a leaf blower) and use it to reveal a simple truth: what looks like magic is actually the result of practiced moves, hidden mechanics, and repetition over time. Then they connect that same idea to real estate—especially single-family rentals—and walk through the exact numbers and checkpoints they watch to determine whether a property is truly “purchase-worthy.” You’ll hear about the magic number (total profit on sale), average monthly increase (AMI), combined cash-on-cash return, and why single-family rentals (SFRs) are quietly some of the most liquid, powerful, and predictable wealth-building tools available. They also explain why your profit & loss (P&L) might show a “loss” while your bank account keeps growing—and why that’s not just okay, it can actually be a tax advantage. By the end of this chapter, the “magic” of Moneyball Real Estate is decoded. The method is on the table. All that’s left is deciding whether you’re ready to follow the formula.
Kevin Clayson (00:00.365)
Chapter 8 Success is magically formulaic. General Principle. Repetition creates significance. Put a penny in toilet paper. My family and I recently attended a magic show at our local library. The magician chose a woman from the audience, asked her for a penny, and gave her a marker to initial it. She held onto the penny while the magician fetched the pièce de résistance for his trick.
he reappeared with a modified cordless leaf blower. Attached to the front was a roll of toilet paper. The principle was simple. When you start the leaf blower, the hurricane force winds would rapidly unspool the roll, causing a mesmerizing vortex of toilet paper to fly out and form a pile about 10 feet away. I reckon this trick would have been infeasible during the great toilet paper shortage of the COVID era, but it worked for when we saw it.
Once a volunteer understood the toilet paper cannon's operation, the magician theatrically pushed the initial penny into the side of the toilet roll. He explained that she would aim the leaf blower at him from 10 feet away, activate the cannon, and release a cloud of toilet paper in his direction. As this spectacle unfolded, he would miraculously catch her penny in his mouth. Just as he was rallying the crowd for a countdown, he quote unquote recalled one final detail.
He rushed backstage, fetched a toilet seat, and held it in front of his face like a target. The audience counted down, the volunteer started the leaf blower, and as anticipated, the entire roll of toilet paper hilariously unraveled, enshrouding the magician in a cocoon of toilet paper. When the toilet paper storm subsided, the magician put down the toilet seat, brushed away the remnants of toilet paper from his face and head, and turned to the audience. With dramatic flair, he
opened his mouth and produced the penny from his tongue. He summoned the volunteer, displayed the penny with her visible initials and dramatically asked, is this your coin? The room exploded in a cacophony of laughter and applause, the magician took a bow and my kids sat wide-eyed in awe. I didn't spill the beans to my children then, but my familiarity with
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magic trick reveals had given me a clue about how he pulled off the stunt. When the magician quote, inserted the penny into the toilet roll, I spotted him palm the coin, keeping it hidden. As he held up the toilet seat, his right hand holding the concealed penny was right next to his mouth. The whirlwind of toilet paper shrouding his face offered the perfect cover to place the penny on his tongue without the audience seeing.
Hence, once the paper storm subsided, all he had to do was open his mouth and unveil the penny with her initials on it. What my kids perceived as magic was, in fact, the culmination of hours upon hours of rehearsal and perhaps hundreds or even thousands of unsuccessful attempts to perfect the illusion's execution and presentation. The spectacle was indeed magical, but in a formulaic way. No matter how awe-inspiring or seemingly unattainable the outcome of any strategy may appear, success never materializes out of thin air.
The magic is the end product of countless unseen micro-wins achieved through a process of practice, failure, and determination. Steve chiming in,
pray with genuine faith and consistently attend church services usually display robust beliefs. If you love God and your neighbor, you'd naturally evolve into a service-oriented individual who, say, wouldn't hesitate to help somebody with a flat tire. Despite the recurring advice at church, I've noted that individuals who start encountering problems are often those who've neglected one of these practices. As I've always instructed my children, over half of success in any undertaking, be it spiritual growth or real estate investing,
hinges on two things. Number one, showing up, and two, honoring your commitments. Examining any successful endeavor closely, you'll discover clues backing this concept. The magic lies in the plain and simple commitment to constant betterment. This book itself serves as an excellent illustration of how we decoded the clues, our past stumbles, exercises, and micro-wins that led to our seemingly miraculous triumphs in real estate and business. Put another way,
Kevin Clayson (04:40.203)
We reverse engineered our end result to share the wonderfully systematic process behind it. Throughout our careers, we invested in various programs, experienced an array of successes and failures, and endured our share of hard knocks. The wisdom we gleaned from these experiences eventually evolved into the principles articulated in this book and the knowledge supporting those principles, such as purchasing properties one at a time, never investing sight unseen, always insisting upon inspections and appraisals,
and maintaining checks and balances. We mastered conducting comprehensive market research to comprehend not just the financial prospects of an area, but also to its landlord and business owner-friendly environment, tax structure, and the reliability of local professionals. We learned to develop and adapt our Moneyball real estate system, knowing that failure to evolve would render us obsolete and spell the end of our service provision. The subsequent sections of this principle delve deeper, so brace yourselves. What follows is our secret formula.
the decoded clues, the precise steps we employ to make the money by real estate feel like magic. Real estate application of principle. The best properties for long-term wealth building are real estate singles that magically create income replacement over time. Measuring the correct numbers inevitably lead to powerful results. Discovering liquidity in SFRs. A commonly underestimated advantage of investing in top-grade single-family rentals or SFRs
is the capacity to swiftly generate liquidity. You heard that right, and we can anticipate your incredulity. Hang on, are buildings quite literally grounded, not the exact antithesis of liquidity? Conventional wisdom might not associate real estate with financial fluidity, and for the most part, it would be correct. It's not feasible to sell a handful of roof shingles to buy a pint of milk. Real estate isn't quite like stock.
However, liquidity pertains to the ease with which you can convert your property and the equity it holds into expendable cash. So, how can you liquify your real estate? You could sell. But for it to be deemed liquid, the property must be easily sellable. You can refinance or secure a home equity line of credit, unlocking some of your property's equity and connect it to a form of debt or leverage. Naturally, there's also cash flow, providing a steady income source for your milk purchases.
Kevin Clayson (06:56.042)
But we'd like you to focus on the facet of liquidity that emerges from owning real estate in high demand areas. High demand and low supply translate into a large pool of potential buyers. A large buyer pool equates to numerous people eager to part with their money in exchange for your property, generating liquidity. SFRs are perennially in high demand, attracting diverse buyers from commercial investment firms and residential investors like our clients to individual homeowners. Additionally,
SFR properties are the simplest to secure the most favorable financing for. Neither of these characteristics applies to apartment complexes, commercial retail buildings, or many other types of real estate. Should you choose to list this kind of house on the open market, you're potentially looking at thousands, maybe even millions of prospective buyers for your property on any given day. Hence, an SFR can be quickly sold if needed. You won't find yourself stuck with an SFR that you can't offload, provided you purchase it wisely in a desirable neighborhood at a justifiable price.
rendering it a reasonably liquid investment. Depending on the duration of your ownership, you might even extract liquidity from an SFR without selling it. These properties are incredibly easy to refinance, enabling you to draw out some of your equity and promptly obtain liquid funds. And if you're in a position to, you should reinvest this liquidity into acquiring more high quality real estate. This is what sets the moneyball investing approach apart, making it significantly less risky than alternative real estate strategies.
Deciphering the Magic. In our Moneyball real estate approach, we view numbers from a distinctive perspective. Among the multitude of calculations, we identify a select few as key determinants of genuine, sustained, and predictable success in real estate. Our focus in this context is on what we sometimes dub the magic number. This magic number condenses a 10-year real estate investment into a singular figure. If this number is positive, the investment as a whole likely holds merit.
To decipher the magic, we need two elements. First, the input representing the funds you inject into the magical apparatus of Moneyball Real Estate. And second, the output signifying the total magic or profit extracted from this apparatus. The input is represented by the total out-of-pocket expenses required for acquisition. And the output is the total profit on sale. Calculating total out-of-pocket expenses and total profit on sale. To work out the total out-of-pocket expenses,
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Combine the down payment, the estimated closing costs, the anticipated prepaid escrows that a lender would necessitate, some post-closing refurbishment expenses for a rental-ready rehab, and any additional charges or expenses linked to closing on a property purchase. To compute the total profit on sale, or the magic, begin with the market value at the time of selling, in this instance, the initial purchase price plus the cumulative appreciation during the ownership period, and add the total cash flow over the years. From this, subtract the mortgage payoff balance,
the initial total out-of-pocket expenses, the costs of vacancy and repairs over the years, and 7.5 % for potential future closing costs on the property sale. We typically also deduct a further $10,000 to $15,000 from the profits in the 10th year for anticipated refurbishment and fix-up expenses, likely necessary to bring the property up to saleable standard. To lend another perspective to this magic number, we often make a swift comparison between the investment value of an asset, like real estate, and that of a more traditional investment avenue, like 401ks.
By converting the magic number or the total profit on sale into an annualized return percentage, we can make this comparison more insightful. Calculating Average Annual Return, ROI. The Average Annual Return on Investment, ROI, is a percentage representation of the net profit made on a property. It's the most common way people evaluate returns in the stock market. The ROI is calculated by dividing the total net profit on a property by the total out-of-pocket expenses, then dividing that cumulative return on investment by the number of years the property has been owned.
The mall mapping concept we discussed earlier emphasizes the importance of understanding your starting point, your end point, and the steps in between on your journey. This holds true for the story of any individual property as well. The input number or the total out-of-pocket expenses marks the beginning of a property story while the magic number signifies its conclusion. The annualized ROI is just another way to express the magic number, demonstrating the success of the overall investment. In order to navigate from the input, the total out-of-pocket expenses, to the output,
The magic number expressed both in dollars and as a percentage, you'll need to pass through a series of checkpoints, procedural steps, and calculations. Between the beginning and the end of a property's story, there are income streams and expenses that must be accurately defined. These numbers are essential for calculating returns, guiding you through the process and enabling you to make the micro-wins that lead to financial independence. Expenses. Purchase price. The purchase price refers to the property's listed or asking price.
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It's the most fundamental expense in your calculations. A potential property's purchase price will determine your down payment and the amount you need to borrow. And future projected appreciation will be based on this initial price. Loan amount. The loan amount represents the total financing you require after deducting closing costs and down payments. This amount, together with the prevailing interest rates, will help calculate other crucial property evaluation figures, such as the principal, interest, taxes, and insurance. Monthly PITI payment. After finalizing a loan,
PITI is the monthly mortgage payment you'll be required to make. It encompasses the principal paid, the interest paid, the taxes escrowed, and the insurance escrowed, hence the acronym PITI. To accurately assess this payment, it's necessary to understand the current mortgage rates and amortization schedules, as well as insurance premiums and property tax amounts, both of which can vary significantly by market. Property management fees.
In our Moneyball real estate strategy, we assume you will hire a professional in-market property manager. This manager will be responsible for collecting and distributing monthly rent, managing repairs, and dealing with tenants. Property managers may charge a setup fee, typically a percentage of the first month's rent, and an ongoing fee for their management services, usually between 8 and 12 % of the gross monthly rent collected. Some property managers might also charge a flat monthly fee, regardless of the purchase price, rent amount, or annual rent increases.
Vacancies and Repairs Throughout the lifespan of a property, there will inevitably be repairs, and there may be periods where the property remains vacant. We account for vacancies and repairs by deducting a percentage of total annual rent from the property's income. Property Analysis To perform a robust property analysis, certain assumptions must be made. We advocate for a conservative approach. For instance, assuming rents will increase around 3 % annually, this would mean a slight yearly income increase from your property.
Rent seldom stays the same. Between 2012 and 2022, the average annual rent increase was 3.18 % across all properties. With desirable single-family homes and appealing neighborhoods, the rent increases could be even higher. Our property analysis also includes three separate appreciation assumptions. The first is based on the historical national appreciation average of 3.5 % over the past hundred years. The second assumption anticipates 5 % annual appreciation
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reflecting the high demand markets where we typically apply our moneyball real estate strategy. The third scenario explores potential appreciation beyond the average 5 % we predict, helping us envision the possibilities if appreciation outpaces our expectations. With expenses clarified and assumptions in place, we can now transition to the exciting part, income and increases.
We juxtapose expenses and incomes against our assumptions and calculate a variety of vital figures to paint a comprehensive picture of a property's potential performance. While we're primarily interested in total out-of-pocket expenses, the input, and the total profit on sale, the magic or output, all intermediate calculations and figures help us determine if the path during the property's lifetime ownership aligns with positive financial growth. These are the micro-wins you stack on your way to millions.
Income and increases. Income is defined as actual liquid dollars that flow into your life. This includes cash flow, principal reduction paid by your tenants, and estimated monthly depreciation as tax savings. Increases on the other hand are non-liquid value increases, similar to how your retirement accounts or stock portfolios are measured and considered. Estimated monthly rent.
When initially assessing the value of a property, our in-market, fully integrated property managers provide rent estimates based on the property size, location, and condition. They use thousands of data points and a historical track record to determine the rental value of the property. For more than a decade, Dunphy Real Estate's property managers have almost a 100 % success rate of estimating a rent amount, then collecting that amount of rent. This is a science based on data, not an estimate based on optimism.
Average Monthly Increase or AMI. Possibly our favorite metric when evaluating the real-life benefits of owning Moneyball Real Estate month over month is AMI. The AMI is calculated by dividing the projected sale and lifetime financial benefit of the property, total profit on sale, by the number of months owned. We believe this is the best way to assess the full spectrum of financial benefits derived from a property. This is the magic number, but expressed as the average financial benefit delivered to you each month.
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Monthly Cash Flow. Cash Flow, or milk money, is calculated by taking the monthly rent collected and subtracting monthly expenses, such as taxes, insurance, homeowners association fees when applicable, property management fees, and debt service, which is your principal and interest. What remains are tangible spendable dollars delivered to you each month. Monthly Principal Reduction. The monthly principal reduction is calculated based on a mortgage amortization schedule.
The original loan amount minus the remaining balance divided by the length of time since the loan was closed. Each month as your tenant pays rent and you apply that rent payment to your monthly mortgage payment, your tenants are effectively paying down your principal for you. Monthly depreciation estimated tax savings. Depreciation tax savings are calculated using the cost of the home, the number of years the home is expected to be used for income producing purposes and the applicable tax rate. The cost of the home typically equates to the purchase price
but can also include any improvements made to the property. Residential rental property is usually depreciated over 27 and a half years. You can calculate depreciation tax savings by dividing the cost of the home by the number of years and multiplying that sum by the tax rate. However, this is a general calculation and it's important to remember that there are many nuances and complexities when calculating depreciation and tax savings. Whenever you're figuring out tax consequences for yourself,
you should absolutely consult with a tax professional. Monthly Combined Cash Increase. This figure is calculated by adding the tangible dollar benefits of net monthly cash flow, monthly principal reduction, and monthly depreciation estimated tax savings to give a total real dollar monthly benefit amount. It's beneficial to consider this comprehensive monthly benefit of a real estate single.
However, it's worth noting that while we include this number in our analysis, you can't spend the principal pay down or your estimated tax savings on a monthly basis in the same way you can with your net cash flow. Cap rate. Though we don't consider the cap rate significant in evaluating a purchase worthy property using the money ball real estate approach, we include it in our property analysis for investors who prefer to see this figure. The cap rate is calculated by dividing the net operating income by the purchase price. Cash on cash return.
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This is calculated by dividing the annual net cash flow over property by the total out-of-pocket expense, the input. Even though this is an annual calculation, the benefit is realized monthly. While this return may be one of the most important return calculations to an average investor, it serves as a mere footnote for the moneyball investor who understands the bigger picture. Combined cash-on-cash return. Combined cash-on-cash return is slightly different and notably more powerful than cash-on-cash return alone.
This return is calculated by taking the sum of the annual net cash flow, adding the principal reduction amount and the estimated tax savings from depreciation, then dividing that combined sum by the total out of pocket investment. We believe that the combined cash on cash return alongside the average monthly increase are the most overlooked, but also the best calculations for determining the purchase worthiness of a property. Total capital to reinvest. The final calculation worth mentioning is the total capital to reinvest.
When you purchase a property with a mortgage, you'll make a sizable down payment that gets deposited into that bank of bricks. When you sell that property, the buyer pays a single sum. From that sum, you'll pay off whatever balance remains on your loan along with the real estate commissions and any seller concessions you may have made. The remaining money will likely be more than just the profit on the sale. It's like selling, getting your initial down payment back and then getting the profit on top. The magic number?
the output or total profit on sale is only a profit calculation and not a how much money will be wired to your account calculation. In our property analysis, the top three figures we list at the very top of the page are number one, total out of pocket investment, the input. Number two, total profit on sale, the magic or the output. Number three, total capital to reinvest or the amount you actually walk away from the closing table with. Deeper dive.
Remember, moneyball real estate is nearly three times as profitable when leveraging with a mortgage, so the most advantageous interpretation of these calculations will assume that you're using a 30-year fixed-rate residential mortgage loan. We typically advise a down payment of 25 % to secure the best rate, but there are many instances where a loan can be obtained with a 20 % down. This largely depends on the lending environment, which literally fluctuates daily.
Kevin Clayson (20:56.891)
It's worth noting, while a 25 % down payment may qualify you for a better interest rate and optimized long-term numbers, that doesn't mean a 20 % down payment is a poor choice. Once you know your purchase price, total out-of-pocket expenses for the property acquisition, interest rate, loan amount, other projected annual expenses, projected rent, and projected appreciation, you can calculate all the necessary numbers to determine if a given property may be a purchase-worthy real estate single that you're willing to act upon. Checking the boxes.
While we're hesitant to provide exact percentage guidelines for evaluating returns due to shifting markets and fluctuating economies, we believe we owe you some general guidelines. Number one, we like to see the combined cash on cash return in the high single digits. Number two, we prefer the average monthly increase to be greater than $700 a month. Number three, we like the total annualized return to exceed 13%. And number four,
we prefer the total profit on sale to be over $100,000 after 10 years. illustrate what a typical real estate single might look like, let's use some round numbers. Suppose you have an out of pocket cost of a hundred thousand dollars to purchase a property. Your collected rent is $2,000 per month. And after factoring all expenses, you have $1,650 per month. That leaves you with a net cashflow of $350 per month.
Multiply that net cashflow of $350 by 12 to get your annual net cashflow of $4,200. To calculate your cash on cash return, divide your annual cashflow, $4,200 in this case, by your total out-of-pocket real estate costs, $100,000 in this example. That decimal multiplied by 100 is the percentage of your realized ROI. In this case, it's 4.2%.
One of the criteria for purchase worthy properties in Moneyball real estate is positive single digit realized ROI. So the above example property is a good representative of the kinds of deals we're looking for. The cash on cash return is different from another number we often discuss the combined cash on cash return. This number takes the cash on cash ROI formula and adds back in your estimated tax savings from depreciation and principal pay down. When these factors are included, the number typically falls between 10 and 15 % for a purchase worthy property.
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although the numbers can change based on certain economies. The bottom line, closely and regularly examine the combined cash on cash return. If you're evaluating a property and your projected performance calculations meet all these general ranges, then we would deem it a really good deal that you should act on for your real estate portfolio. Understanding cash flow versus profit and loss statement. A key criterion of an valuable investment property is its potential to yield a positive cash flow.
If the rent is not keeping pace with property appreciation or if property management costs are eating into the rental income, it might not be an optimal investment at this time. A common misperception arises when a property generating positive cashflow appears as a loss on a profit and loss or P &L statement, which often occurs when investors file their taxes. This discrepancy can lead some to erroneously think they should sell the property immediately, mistaking the loss on paper as an actual financial loss.
This perceived loss usually results from accounting practices such as depreciation and amortized expenses incurred during property purchase. These factors can offset the actual profit from a tax standpoint, even though the property may be generating a steady positive cash flow. From an accounting perspective, while the property might appear to be running at a loss, it doesn't mean you're losing real money on your investment. In fact, this loss can be beneficial as it can help reduce your tax liability due to the associated write-offs.
while your bank account continues to grow from the positive cashflow generated when your tenant pays their rent. In short, it's crucial to understand the difference between cashflow and the figures shown on P &L statement. Even though the latter might show a loss, a property with steady positive cashflow can still be a solid and profitable investment. Deciphering profit and loss versus cashflow. The key difference between a cashflow statement and a profit and loss statement can significantly impact your understanding
of the performance of your investment property. It can also influence the advice given by your tax accountant who may unintentionally provide misleading information due to a primary focus on tax forms. Tax accountants typically analyze P &L statements for your rental properties which are more relevant to tax filing and do not generally consider cash flow statements. The P &L statement factors in depreciation, an immense but non-cash expense, and amortized costs such as closing expenses.
Kevin Clayson (25:39.878)
These expenses are recognized at the time of purchasing the property and consequently, many P &L statements for single-family homes might indicate a financial loss. However, the P &L statement does not provide a comprehensive view of your property's performance. If your property generates a positive cash flow, even if it registers as a loss on your P &L statement, your investment is not failing.
The situation may even be advantageous. If your property is recorded as a loss on the PNL statement and your accountant suggests that it is underperforming, you might feel the need to sell the property prematurely or increase the rent. This can result in a big financial loss by trying to find a new tenant willing to pay a higher rent or by selling a viable property sooner than necessary. To avoid such scenarios, it's crucial to set your rent at a competitive rate within the local market. To obtain a more accurate understanding of your property's performance,
Consider both the P &L statement and the cash flow statement factoring back in the appreciation and amortized expenses. At Dunphy Real Estate, we've developed a hybrid statement that combines elements of both, allowing for an accurate calculation of real cash flow and tax savings achieved from registering as a loss. For more detailed examples of P &L, cash flow, and our unique hybrid statement, please visit dfy-realestate.com and request a game plan call. Emphasizing predictable and consistent.
The focus of the Moneyball real estate strategy is to ensure predictable, consistent results that provide long-term stability without unpleasant surprises. We steer clear of speculative investments with high volatility, favoring instead the steady growth and reliable income streams provided by single-family rentals. The core aspect of our wealth building strategy is the acquisition and long-term holding of SFRs. This doesn't mean you should never sell your properties. On the contrary, when the time is right to sell,
We encourage using the proceeds to reinvest in your real estate portfolio. Ideally, this would be accomplished through a 1031 exchange, which is a provision in the U.S. tax code that allows for the deferral of capital gains taxes when proceeds from a sold property are reinvested into a like kind property. The magic of the moneyball real estate approach lies in its compounding nature, growing your assets and residual income through consistent cash flow, which can only expand if you continue to invest and augment your portfolio.
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Even as the composition of your portfolio changes over time, holding onto properties indefinitely can create a continuously productive asset machine. However, when you sell a property and use those proceeds for anything other than further real estate investment, you forfeit the financial benefits associated with that asset. This is because the money from the sale is now subject to taxes and any depreciation you'd written off on your taxes is recaptured by the IRS, meaning you have to pay it back. This is why the
buy and hold and sell and grow approaches are so fundamental to our strategy. We understand that life happens and sometimes you might need the cash for something other than reinvestment. In such cases, we recommend considering refinancing. This process can convert your equity into liquid cash for you to use when and how you need while still allowing you to retain the asset. That way your property can continue to appreciate and provide a steady cash flow continuing to work for you. Side note, when you refinance, that is not taxable in
great way to generate income or take equity out of your property without being subjected to any sort of tax. A win for all parties. It's fundamental that any property you consider purchasing fits within your financial capabilities. If you live in a high cost area, don't limit your property search to your locale. Consider more affordable markets elsewhere. Typically, we've found that average purchase price in our target markets is at or below the median national price.
making real estate investing a more achievable goal for many individuals aiming to replace their income. In essence, regardless of how you crunch the numbers, the most critical aspect is that the property's cost is affordable for you. If a property's mortgage is going to be a significant burden, especially if it takes time to secure a suitable tenant, it's probably not a wise investment for you at that point. A truly beneficial real estate deal is one that is advantageous for all parties involved.
We don't advocate exploiting others in the process of buying or owning a property. This isn't to say you shouldn't negotiate for the best possible deal. However, pushing someone into an unfavorable deal is not a practice we endorse. Aiming for mutually beneficial agreements where each transaction represents a win for the seller, property manager, tenant, and yourself leads to healthier long-term relationships. Operating with this mindset brings you long-term benefits, both financially and personally.
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It's reassuring to know that your success isn't built on the losses of others and you won't have to worry about negative repercussions down the line. In the words of the author, John Huntsman, quote, winners never cheat. It's that simple. John Huntsman is a self-made billionaire who founded Huntsman Corporation. We're such big fans of his and highly recommend his book Winners Never Cheat, because as the title implies, he has conducted himself with high ethics and humanitarian values throughout his life.
He founded the Huntsman Cancer Institute with a $10 million grant and has donated more than $1.4 billion to cancer research. When his business wasn't doing well, he took out loans to honor his charitable commitments rather than prioritize his own profit. He achieved the wealth so many people dream of, yet his fulfillment came from philanthropy and giving most of it away. And we highly recommend his book titled after that phrase. In conclusion, there's no secret trick.
cheat code or shortcut to finding the perfect purchase-worthy property, the path to success in real estate lies in making consistent, careful decisions, buying conservatively priced single-family rentals and ensuring mutually beneficial transactions. This steady, ethical approach to investing is the cornerstone of achieving sustainable success in real estate. Chapter 8 – Ideas Summary Success in real estate is not a mysterious or random phenomenon.
It's formulaic and can be replicated by anyone who's willing to follow a precise set of methods and principles. There are specific techniques and strategies that professionals use to evaluate potential investments. This is where the numbers meet intuition and where analysis informs decision-making. The magic is in the method and the method can be mastered. What seems magical to the outsider is often meticulous to the insider. We unmasked the so-called magic of real estate success.
showing that it is accessible and achievable through thoughtful planning, precise calculation, and adherence to sound principles. Chapter 8, Micro-Wins. Embracing the Formula. Can you see how success in real estate follows a discernible pattern? Recognizing and embracing this is a micro-win that opens doors to smart strategic investing. Practicing Property Analysis. Take a moment to apply the property analysis tools and techniques we shared.
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Whether on an actual or theoretical investment, this practice is a micro-win that sharpens your acumen and builds confidence in your investment decisions. Acknowledging the achievable. Acknowledge that success in real estate isn't just for the elite or the lucky, it's for anyone willing to apply the formula. This shift in mindset is a micro-win that puts you on the path to your real estate goals.