Clear your schedule, mark your calendar, and get ready for a full day of virtual education brought to you by SJREIA. On December 5th, from 8:30 am until 5 pm, this free Zoom event will feature over 20 national and local speakers.
Topics include wholesaling, staging to increase price and value, rentals and land-lording, latest flooring innovations, how to work with appraisals, making rehab decisions and so much more!
Throughout the day, you will have the opportunity to hear from five national speakers that you will not want to miss including Marc Halpern who offered us a sneak peek of his presentation.
Get to Know Marc Halpern
Marc Halpern is a national speaker that focuses primarily on part-time investing. Marc has a Ph.D. in organic chemistry and has achieved financial freedom through part-time investing. Marc’s presentations offer valuable technical content without the hype. You may be familiar with some of Marc’s well-known presentations such as “Self Image Tuneup” and “35 Valuable Lessons I Learned in 35 Years of Part-Time Investing.”
During our Speed Learning event, Marc will be presenting, “Leverage of OPM - The Good, The Bad and The Ugly in Real Estate Investing.” Mr. Halpern was gracious enough to offer up three golden “nuggets” of information prior to his presentation on December 5th.
Characteristics of Good/Bad Leverage
OPM or “Other People’s Money” is the bedrock of successful real estate investing. The real estate term for using OPM is “leverage.” Throughout Marc’s hour-long presentation, he will be discussing how much leverage is good for healthy growth and how much is dangerous in various stages of real estate investing.
According to Marc, “good leverage” has three key characteristics:
- Good leverage builds wealth.
- Good leverage generates positive cash flow.
- Good leverage can weather downturns (this characteristic is the most often overlooked)
“Bad leverage” has one simple characteristic - it looks great until a downturn hits.
Calculating Leverage
One of the biggest questions that new investors have is “How do I know how much is good/bad leverage?” As with the aforementioned topic, Marc will be teaching on this in great detail. He did, however, offer us this brief insight into how he calculates leverage.
“Let’s assume that the day after you buy a property, the housing market goes into a sudden recession. Assume that that this results in a 5% reduction in rent and a 10% reduction in value.” explains Halpern. “Assume that this continues for five years then do the calculations. Ask yourself if you still have a positive cash flow. Do you still have equity?”
Thinking Big Picture
Marc will explain in detail a concept that he refers to as “portfolio-wide leverage,” which takes a look at all assets and liabilities within your portfolio. Marc’s philosophies in investing teach that there is a healthy amount of leverage to have in different stages of your career as a real estate investor, from the beginning of your career, through the bulk of your investing, and into retirement.
Portfolio-wide leverage takes a look at four different categories from 0% leverage (low to no growth) to 100% leverage (where one hiccup leads to bankruptcy), and two other stages in between that Marc will teach during his presentation.
Marc Halpern is a long-time guest speaker for SJREIA and we look forward to the value that he will bring to our virtual event. For further details on these topics and more, make sure to hang out with us on December 5th from 8:30am-5pm for a day full of education and networking. Register for the event HERE.
In the meantime, if you’d like to learn more from Marc Halpern, visit www.PartTimeInvestorsLLC.com.
We look forward to seeing you on December 5th! Stay tuned for sneak peeks from our other national speakers coming soon.