Course Materials
How to Work with Real Estate Investors PART 1
By: Tom Lundstedt, CCIM
Section 3: Case Study – Uncle Louie Assumptions
Purchase Cost
•$585,000
Cash Invested
•$126,000
Financing
•$459,000 @ 7%
•P&I = $3,054 per month
• First Year Interest = $31,982
Annual Rent
•$89,550/yr
Vacancy
•10% = $8,955
First Year Operating Expenses
•$36,260
Total First Year Depreciation
•$29,000
Purchase Date
• January
Appreciation
•Zero
Tax Bracket
•35% Combined State and Federal
1
2
jared.martin
Typewritten Text
Section 3: Case Study - Uncle Louie
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
Student Worksheet
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
3
jared.martin
Typewritten Text
Section 3: Case Study - Uncle Louie
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$585,000
jared.martin
Typewritten Text
$126,000
jared.martin
Typewritten Text
$459,000
jared.martin
Typewritten Text
7%
jared.martin
Typewritten Text
$3,054
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$29,000
jared.martin
Typewritten Text
$89,550
jared.martin
Typewritten Text
$8,955
jared.martin
Typewritten Text
$80,595
jared.martin
Typewritten Text
$36,260
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$80,595
jared.martin
Typewritten Text
$36,260
jared.martin
Typewritten Text
$44,335
jared.martin
Typewritten Text
$36,648
jared.martin
Typewritten Text
$7,687
jared.martin
Typewritten Text
$36,648
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$31,982
jared.martin
Typewritten Text
$4,666
jared.martin
Typewritten Text
$44,335
jared.martin
Typewritten Text
$31,982
jared.martin
Typewritten Text
$29,000
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
-$16,647
jared.martin
Typewritten Text
jared.martin
Typewritten Text
35
jared.martin
Typewritten Text
jared.martin
Typewritten Text
-$5,826
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$0
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
N/A
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
14.4
jared.martin
Typewritten Text
7.6
jared.martin
Typewritten Text
6.1
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
Answer Sheet
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$18,179
jared.martin
Typewritten Text
_________
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$126,000
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$44,335
jared.martin
Typewritten Text
jared.martin
Typewritten Text
_________
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$585,000
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
_________
jared.martin
Typewritten Text
$7,687
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$126,000
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
Section 4: Case Study – Rental House Assumptions
Purchase Cost
•$120,000
Cash Invested
•$25,000
Financing
•$95,000 @ 6%
•P&I = $570 per month
• First Year Interest = $5,668
Annual Rent
•$1,100 per month x 12 = $13,200
Vacancy
•One month vacant
First Year Operating Expenses
•$3,654
Total First Year Depreciation
•$5,080
Purchase Date
• January
Appreciation
•Zero
Tax Bracket
•30% Combined State and Federal
4
jared.martin
Typewritten Text
jared.martin
Typewritten Text
5
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
Section 4: Case Study - Rental House
jared.martin
Typewritten Text
Student Worksheet
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
6
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$120,000
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$25,000
jared.martin
Typewritten Text
$95,000
jared.martin
Typewritten Text
6%
jared.martin
Typewritten Text
$570
jared.martin
Typewritten Text
$5,080
jared.martin
Typewritten Text
$13,200
jared.martin
Typewritten Text
$1,100
jared.martin
Typewritten Text
$12,100
jared.martin
Typewritten Text
$3,654
jared.martin
Typewritten Text
$12,100
jared.martin
Typewritten Text
$3,654
jared.martin
Typewritten Text
$8,446
jared.martin
Typewritten Text
$6,840
jared.martin
Typewritten Text
$1,606
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$6,840
jared.martin
Typewritten Text
$5,668
jared.martin
Typewritten Text
$1,172
jared.martin
Typewritten Text
$8,446
jared.martin
Typewritten Text
$5,668
jared.martin
Typewritten Text
$5,080
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
-$2,302
jared.martin
Typewritten Text
30
jared.martin
Typewritten Text
jared.martin
Typewritten Text
-$691
jared.martin
Typewritten Text
$0
jared.martin
Typewritten Text
jared.martin
Typewritten Text
13.9
jared.martin
Typewritten Text
7.0
jared.martin
Typewritten Text
6.4
jared.martin
Typewritten Text
jared.martin
Typewritten Text
Section 4: Case Study - Rental House
jared.martin
Typewritten Text
jared.martin
Typewritten Text
Answer Sheet
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$3,469
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
_________
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$25,000
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
_________
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$8,446
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$120,000
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
_________
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$1,606
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$25,000
jared.martin
Typewritten Text
Section 5: Case Study – Pay All Cash for the Rental House Assumptions
Purchase Cost
•$120,000
Cash Invested
•$120,000
Financing
•N/A
•First Year Interst ‐ N/A
Annual Rent
•$13,200
Vacancy
•$1,100
First Year Operating Expenses
•$3,654
Total First Year Depreciation
•$5,080
Purchase Date
•January
Appreciation
•Zero
Tax Bracket
•30% Combined State and Federal
7
jared.martin
Typewritten Text
jared.martin
Typewritten Text
8
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
Section 5: Case Study - Pay All Cash for the Rental House
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
Student Worksheet
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
9
jared.martin
Typewritten Text
$120,000
jared.martin
Typewritten Text
$120,000
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$5,080
jared.martin
Typewritten Text
$13,200
jared.martin
Typewritten Text
$1,100
jared.martin
Typewritten Text
$12,100
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$3,654
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$12,100
jared.martin
Typewritten Text
$3,654
jared.martin
Typewritten Text
$8,446
jared.martin
Typewritten Text
$0
jared.martin
Typewritten Text
$8,446
jared.martin
Typewritten Text
$0
jared.martin
Typewritten Text
$0
jared.martin
Typewritten Text
$8,446
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$0
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$5,080
jared.martin
Typewritten Text
$3,366
jared.martin
Typewritten Text
jared.martin
Typewritten Text
30
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$1,010
jared.martin
Typewritten Text
$0
jared.martin
Typewritten Text
jared.martin
Typewritten Text
6.2
jared.martin
Typewritten Text
jared.martin
Typewritten Text
Section 5: Case Study - Pay All Cash for the Rental House
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
Answer Sheet
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$7,436
jared.martin
Typewritten Text
_________
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$120,000
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
10
jared.martin
Typewritten Text
$300,000
jared.martin
Typewritten Text
$60,000
jared.martin
Typewritten Text
$25,000
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$190,000
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$25,000
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
20
jared.martin
Typewritten Text
3.48
jared.martin
Typewritten Text
jared.martin
Typewritten Text
$5,000
jared.martin
Typewritten Text
$6,612
jared.martin
Typewritten Text
5
jared.martin
Typewritten Text
$1,250
jared.martin
Typewritten Text
$12,862
jared.martin
Typewritten Text
jared.martin
Typewritten Text
jared.martin
Typewritten Text
Section 6: Depreciation Exercise
jared.martin
Typewritten Text
jared.martin
Typewritten Text