Jeremy Veldman spoke at Talk Shoppe- a local Memphis Business and Investing Group on the power of Passive Real Estate Investing. In the talk, Jeremy analyzed a specific deal- 5144 Country View, a typical example of the types of properties Memphis Turnkey sells to investors. Jeremy discussed how the “Blended ROI” of the property is actually MUCH HIGHER than the ROI when looking at just the cash flow from the property. The Blended ROI takes into account 5 things (1) Positive Cash Flow, (2) Leverage, (3) Tax Benefits, (4) Depreciation, and (5) Appreciation.
After dissecting this deal, the BLENDED ROI actually is somewhere between 39% and 69% depending on how the deal is financed. Assuming it is financed with Private Money at 35% down, the ROI would be 39%. If it were financed with 20% down conventional financing, the ROI would be closer to 69%!! This assumes also, that your CPA understands how to calculate depreciation correctly. Not all CPA’s are created equal and very few understand how Real Estate investing works. It is important to find a CPA who is a Real Estate Investor himself and knows the laws, rules, regulations, and opportunities for maximum benefits. Jeremy discusses depreciation in the presentation and how his CPA (who owns 160 rentals himself) calculates it when analyzing a property.
More of these types of deals are available in our inventory, but are going quick as investors learn the power of owning property! Watch the presentation and CONTACT US if you have comments or questions.