There’s Been A Death…

There’s Been A Death...

In today’s episode, we talk about the death of the 1% Rule in real estate investing.

“Rules of thumb aren’t bad, but they can get in the way of good investments.” -Kevin Clayson

The 1% Rule is a rent to price rule that has dictated the “what makes a good investment property” conversation for a decade.

This rule was the judging value of whether or not investors wanted to look at a specific property. Since it is just a simple metric (based on what the rent is and what the purchase price is), following it religiously led many people to overlook good deals and waste time where they could have been receiving cash flow.

The unspoken part about the 1% rule is that only about 1% of the properties meet that criteria. That’s very few properties. The truth is that this rule does not work and is no longer a viable way to evaluate a property.

Dive in to get all of the details.

Key Takeaways:

  • Introduction (0:00)
  • The death of the 1% Rule (6:22)
  • The unspoken part about the 1% Rule (8:58)
  • The importance of calculating the opportunity cost (11:04)
  • Properties have multiple profit centers (14:25)
  • A sports analogy to deepen on these concepts (25:00)

Additional Resources:

  • Learn more about Done For You Real Estate: VISIT HERE
  • Get a FREE Income Replacement Estimate (IRE): APPLY HERE
  • Register for our FREE Monthly Webinar Series: SIGN UP HERE

FOLLOW for more Replace Your Income:

https://bit.ly/ReplaceYourIncomePodcast

If you enjoyed this episode, please rate and review our podcast. Thank you for your support!

And remember…

Income replacement for you and your family may only be one property away!

Like this post?

Share on facebook
Share on Facebook
Share on twitter
Share on Twitter
Share on linkedin
Share on Linkdin
Share on pinterest
Share on Pinterest
Share on email
Email to Friend
Share on print
Print it

read other posts...

Let’s Meet

Receive a Free and Customized Real Estate Income Estimate

Collaborate with a dedicated On-boarding Specialist who will work with you and for you, and provide a free, customized Real Estate Income Estimate (REIE). Your Estimate will show you how you can begin generating real income with simple and conservative real estate investments, one property at a time, starting right away with the resources you already have. This brief conversation will answer your questions, unlock the investment purchasing process, deliver practical ideas of how real estate “done for you” could have an immediate impact on your financial life, while providing clear guidance, and customized recommendations to assist you with your financial future. This conversation only takes a few minutes but can change the trajectory of your financial future. Enter your info to get started.
Play Video
 
By clicking the Schedule A Call button, I agree that I am providing authorization to Done For You Real Estate USA, The Companies, LLC, Strategic Lending, Inside Insurance, or third parties that perform functions on our behalf or for our clients, and for which The Companies, LLC may receive compensation, to contact me for telemarketing and informational purposes at the telephone number provided, even if I have previously registered on a corporate, state or national Do Not Call registry. I have authority to provide this consent because I am the subscriber of the telephone number or I am a customary user who has authority to consent to these communications. I also agree that Done For You Real Estate USA, may contact me using text messages, even if the number is connected to a service for which I am charged. I understand that I am not required to provide consent as a condition of purchase, or loan consideration or approval. Msg & data rates may apply.

Thank You! For subscribing to our weekly newsletter.

Expect an email from us soon.

Check out the new top rated

Replace Your Income

Podcast

We use cookies to improve user experience and analyze website traffic. For these reasons, we may share your site usage data with our analytics partners, but we do NOT sell your data to any third parties. Feel free to read our Terms and Conditions and Privacy Policy to learn more.