Today Jason wants you to understand that "regression to replacement cost" and Land to Improvement (LTI) ratios is crucial for real estate investors. This concept involves separating property value into land and improvement (buildings) components to assess risk and appreciation. High land value markets are riskier due to cyclical volatility. Replacement cost analysis, comparing property price to construction costs, reveals potential gains. Investors should focus on cash flow, not just appreciation, and recognize the impact of land value on tax benefits. Analyzing property performance using tools like the Hartman Risk Evaluator improves investment decisions.
#RealEstateInvesting #PropertyInvestment #LTIratio #RegressionToReplacementCost #RealEstateRisk #CashFlowInvesting #PropertyAnalysis #InvestmentStrategy #RealEstateEducation #FinancialFreedom
Key Takeaways:
Jason's introduction
1:28 https://empoweredinvestorlive.com is only a few days away!
1:46 Regression to replacement cost
2:29 Real estate pro Bill Allen and the current housing market
4:26 "A buyer in every market"
6:36 Where are we headed this year
https://www.7figureflipping.com/
Jason on Regression to replacement cost
8:43 An NAHB article
15:22 Birmingham property: Land value vs. the "improvement" on the land
26:09 For the those who like to gamble
27:26 Projected ROI on the Birmingham property
28:38 Go to https://www.jasonhartman.com/ and watch "How to Read a Pro Forma"
29:24 Love us or hate us, please write a review of the show!
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