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How to Build a Passive Income Portfolio with Creative Financing & Private Money

Discover essential strategies to build a passive income portfolio using creative financing and private money. In this module, we analyze critical metrics such as Cash on Cash Return and CAP Rate to evaluate investment profitability. Learn how to utilize a cash flow spreadsheet to assess your investments, calculate annual income versus cash invested, and determine how long it will take to recoup your investment. We also examine profitability examples for lease options and subject-to contracts, empowering you to make informed financial decisions.

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How to Build a Passive Income Portfolio with Creative Financing & Private Money

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  1. Module 1D – Criteria & Analysis How to Build a Passive Income Portfolio with Creative Financing & Private Money

  2. Criteria

  3. Cash Flow Spreadsheet Analysis • See Cash Flow Spreadsheet Analysis • Your Main Concerns are “Cash on Cash Return” and “CAP Rate” • “Cash on Cash Return” is the cash income on the cash invested • Annual Income divided by Cash Invested – How • many years to recoup the investment? • “CAP Rate” – Net Operating Income divided by Sale Price • A “good” cap rate has to be compared to other cap rates in the areas of properties under the same economic conditions

  4. Cash Flow Spreadsheet Analysis View Spreadsheet Example

  5. Profitability for Lease Options (& Master Lease) Example (see included worksheet)

  6. Profitability for ‘Subject To’(& Contract for Deed)

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