The 1% Rule is a handy formula for real estate investor to evaluate the potential profitability of any given deal, without pulling out a calculator or going through a complex financial model. Let’s take a look at the formula itself: Monthly Income / Purchase Price * 100 Here is an example: For an investment property…
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DSCR – Debt Service Coverage Ratio
Even though the title of this blog post is DSCR (Debt Service Coverage Ratio), we will use this opportunity to explain both DSCR and DTI (Debt To Income Ratio), as they are both important concepts around debt financing calculations. First, let’s check out the formula for DSCR: DSCR = NOI / Total Debt Service We…
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Turnkey Property Investing
If your investment strategy is to be passive, investing in Turnkey Properties is definitely a good method to consider. Until now, the concept of “turnkey property” is still very loosely-defined to something as, “a property that is already rehabbed, has a tenant placed, and cash-flowing.” There are a lot of so-called “turnkey providers” out there,…
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When Can I Retire?
Have you ever asked yourself (or your friends) this question, “When can I retire?” Traditionally, we think of reaching the goal of retirement when we have $X in our bank account. For example, one will say, “I can retire when I have 2 million dollars in my bank.” Although that is a very common and…
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Morning S.A.V.E.R.S. – Part 1
Living in the world of “snooze” buttons, it is very common for us trying to maximum our time in bed and only waking up at the very last minute, I can certainly understand it is not easy to embrace the concept of Morning S.A.V.E.R.S. We at DoorInvestor do not require our team members to religiously…
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CAP Rate – Capitalization Rate
CAP Rate is one of the most important indicators, if not the most important indicator, for real estate investors to evaluate deals. What CAP Rate gives us is an unbiased view when comparing properties side-by-side. To begin, let’s start off with the formula: CAP Rate = NOI / Property Price As you can see, the…
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FIRE – Financial Independence, Retire Early
People often have a negative impression when it comes to the concept of “retirement.” Some may say, “it will be so boring when you do nothing at home;” other may say, “we should be productive to this world and not waste our talents.” I do not disagree with all these statements, but at the same…
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The Review of Rich Dad’s Cashflow Quadrant
I believe the entire Rich Dad concept is built around the infamous Cashflow Quadrant. The Cashflow Quadrant is made up of 4 categories, obviously. They are: E, S, B, I. E means Employee; S means Self-Employed; B means Business; and I means Investment. These 4 categories can generally cover all possible types of ways to…
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Perfect Day
We at DoorInvestor encourage every team member to write down his/her “Perfect Day.” The purpose of this exercise is to allow you to visualize how you want to live your life. Think about it: Most of us live in “busy, yet routine, schedule” in which we are constantly running around chasing to complete the next…
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Real Estate Investing as Bird Dog
Bird Dog is an important role in the world of real estate investing. A bird dog is responsible to look for motivated sellers, undervalued deals, and/or local opportunities… etc., even do some initial due diligence, and then turn around and present the deals to potential investors, in exchange for a “finder’s fee.” Here is the…