HOW TO ANALYZE RENTAL PROPERTIES For Maximum Cash Flow! A Free - - PowerPoint PPT Presentation

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HOW TO ANALYZE RENTAL PROPERTIES For Maximum Cash Flow! A Free - - PowerPoint PPT Presentation

Aug 18, 2022 142 likes •1.44k views

Get todays worksheet at www.BiggerPockets.com/118worksheet HOW TO ANALYZE RENTAL PROPERTIES For Maximum Cash Flow! A Free Webinar From BiggerPockets.com WELCOME! (You rock!) LET ME ASK YOU A QUESTION ARE YOU READY TO GET NERDY?

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SLIDE 1

HOW TO ANALYZE RENTAL PROPERTIES

For Maximum Cash Flow!

A Free Webinar From BiggerPockets.com Get today’s worksheet at
 www.BiggerPockets.com/118worksheet
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SLIDE 2

WELCOME!

(You rock!)

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SLIDE 3

LET ME ASK YOU A QUESTION…

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SLIDE 4

ARE YOU READY TO GET NERDY?

(I hope so!)

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SLIDE 5

ARE YOU IN THE RIGHT PLACE?

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SLIDE 6

YOU ARE IN THE RIGHT PLACE IF…

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SLIDE 7

YOU ARE IN THE RIGHT PLACE IF…

➤ You are looking to avoid buying terrible deals
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SLIDE 8

YOU ARE IN THE RIGHT PLACE IF…

➤ You are looking to avoid buying terrible deals ➤ You want to achieve financial freedom

through rental properties in the next decade…

  • r less!
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SLIDE 9

YOU ARE IN THE RIGHT PLACE IF…

➤ You are looking to avoid buying terrible deals ➤ You want to achieve financial freedom

through rental properties in the next decade…

  • r less!
➤ You have limited time in your day, so you

need to streamline the deal analysis process.

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SLIDE 10

WHAT WE’LL BE COVERING TODAY:

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SLIDE 11

WHAT WE’LL BE COVERING TODAY

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SLIDE 12

WHAT WE’LL BE COVERING TODAY

➤ Worksheet download!
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SLIDE 13

WHAT WE’LL BE COVERING TODAY

➤ Worksheet download! ➤ About me and BP
slide-14
SLIDE 14

WHAT WE’LL BE COVERING TODAY

➤ Worksheet download! ➤ About me and BP ➤ Why analysis matters
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SLIDE 15

WHAT WE’LL BE COVERING TODAY

➤ Worksheet download! ➤ About me and BP ➤ Why analysis matters ➤ How to analyze deals by hand
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SLIDE 16

WHAT WE’LL BE COVERING TODAY

➤ Worksheet download! ➤ About me and BP ➤ Why analysis matters ➤ How to analyze deals by hand ➤ How to analyze deals using BiggerPockets Analysis tools
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SLIDE 17

WHAT WE’LL BE COVERING TODAY

➤ Worksheet download! ➤ About me and BP ➤ Why analysis matters ➤ How to analyze deals by hand ➤ How to analyze deals using BiggerPockets Analysis tools ➤ My analysis process
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SLIDE 18

WHAT WE’LL BE COVERING TODAY

➤ Worksheet download! ➤ About me and BP ➤ Why analysis matters ➤ How to analyze deals by hand ➤ How to analyze deals using BiggerPockets Analysis tools ➤ My analysis process ➤ Other Pro tools
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SLIDE 19

WHAT WE’LL BE COVERING TODAY

➤ Worksheet download! ➤ About me and BP ➤ Why analysis matters ➤ How to analyze deals by hand ➤ How to analyze deals using BiggerPockets Analysis tools ➤ My analysis process ➤ Other Pro tools ➤ Question/Answer
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SLIDE 20

FOLLOW ALONG WITH TODAY’S WORKSHEET:

www.BiggerPockets.com/608worksheet

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SLIDE 21

Special Gift:

The

www.BiggerPockets.com/books

WORKSHEET: www.BiggerPockets.com/909worksheet
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SLIDE 22

Special Gifts:

www.BiggerPockets.com/_______ www.BiggerPockets.com/______

(At the end!)

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SLIDE 23

ABOUT ME

(Brandon Turner)

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SLIDE 24

BRANDON

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SLIDE 25

BRANDON

Cohost of BP Podcast

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SLIDE 26

BRANDON

Cohost of BP Podcast Real estate investor

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SLIDE 27

BRANDON

Cohost of BP Podcast Real estate investor Guitar player & drummer

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SLIDE 28

BRANDON

Cohost of BP Podcast Real estate investor Guitar player & drummer Author

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SLIDE 29

BRANDON

Cohost of BP Podcast Real estate investor Guitar player & drummer Author
 Once was in a barbershop quartet!

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SLIDE 30 My family… :)
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SLIDE 31

BIGGERPOCKETS

The Real Estate Investing Social Network, Marketplace, and Information Hub.

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SLIDE 32

BIGGERPOCKETS

The Real Estate Investing Social Network, Marketplace, and Information Hub.

Blogs Forums Podcast Books Conference Meetups Videos Forms/Files Networking
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SLIDE 33

WHY ANALYSIS MATTERS

(Seriously…)

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SLIDE 34

THE MARTIN DISASTER

Ugh…

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SLIDE 35

WHAT DO YOU WANT REAL ESTATE TO DO FOR YOU?

What is your goal? What is your “why?”

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SLIDE 36

“

Some people want it to happen, some wish it would happen, others make it happen.

  • Michael Jordan
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SLIDE 37

IF YOU WANT YOUR GOALS AND DREAMS TO COME TRUE… YOU HAVE TO LEARN TO ANALYZE DEALS CORRECTLY.

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SLIDE 38

HOW TO ANALYZE DEALS BY HAND…

(because you need to know how…)

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SLIDE 39

ANALYZING CASH FLOW

(Cha ching!)

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SLIDE 40

ANALYZING CASH FLOW

INCOME

  • EXPENSES

=CASH FLOW

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SLIDE 41

ANALYZING CASH FLOW

INCOME EXPENSES

Rental Income Laundry Income Storage Income Late fees

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SLIDE 42

ANALYZING CASH FLOW

INCOME EXPENSES

Rental Income Laundry Income Storage Income Late fees




  • Garbage

  • Gas

  • Electricity

  • HOA fees

  • Snow removal

  • Lawn care

  • Property management
  • Taxes

  • Insurance

  • Vacancy

  • Repairs

  • CapEx

  • Water

  • Sewer

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SLIDE 43

HOW DO YOU FIND OUT THESE EXPENSES?

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SLIDE 44

LET’S LOOK AT A REAL- LIFE EXAMPLE

(just for fun!)

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SLIDE 45

(REMEMBER … MATH IS RELATIVE)

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SLIDE 46
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SLIDE 47

DEAL OR NO-DEAL?

(don’t worry… I won’t hold you to it!)

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SLIDE 48

ANALYZING CASH FLOW

INCOME EXPENSES

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ANALYZING CASH FLOW

INCOME EXPENSES $895

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ANALYZING CASH FLOW

  • Taxes

  • Insurance

  • Vacancy

  • Repairs

  • Capital expenditures

  • Water

  • Sewer

  • Garbage

  • Gas

  • Electricity

  • HOA fees

  • Snow removal

  • Lawn care

  • Property management
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SLIDE 51

ANALYZING CASH FLOW

Taxes
 Insurance
 Vacancy
 Repairs
 CapEx
 Water
 Sewer
 Garbage
 Gas
 Electricity
 HOA fees
 Snow removal
 Lawn care
 Property management $124.94 $45.00 $44.75 (5%) $44.75 (5%) $161.10 (18%) $0 $0 $0 $0 $0 $0 $0 $0 $89.50 (10%) $510.04 Operating Expenses:
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ANALYZING CASH FLOW

INCOME EXPENSES $895 $510.04

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WHAT EXPENSE DID WE NOT INCLUDE?

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THE MORTGAGE

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THE MORTGAGE

$74,900 x .8 = $59,920.00

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THE MORTGAGE

$74,900 x .8 = $59,920.00

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SLIDE 57

THE MORTGAGE

$74,900 x .8 = $59,920.00

$321.66

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SLIDE 58

ANALYZING CASH FLOW

INCOME EXPENSES $895 $510.04

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SLIDE 59

ANALYZING CASH FLOW

INCOME EXPENSES $895 $510.04 + $321.66

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SLIDE 60

ANALYZING CASH FLOW

INCOME EXPENSES $895 $510.04 + $321.66 $831.70

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SLIDE 61

ANALYZING CASH FLOW

INCOME

  • EXPENSES

=CASH FLOW $895.00

  • $831.70

$63.30

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SLIDE 62

IS $63.30 A GOOD AMOUNT OF CASH FLOW?

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ANALYZING 
 RETURN ON INVESTMENT

(AKA “ROI”)

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CASH ON CASH RETURN ON INVESTMENT = COROI

(The return on investment just from the cash flow)

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COCROI = ANNUAL CASH FLOW

TOTAL INVESTED CAPITAL

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SLIDE 66

COCROI = ANNUAL CASH FLOW

TOTAL INVESTED CAPITAL

$63.30 X 12 ????? COCROI =

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SLIDE 67

HOW MUCH MONEY DID WE PUT INTO THIS DEAL?

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HOW MUCH CAPITAL DID WE INVEST?

➤ Down Payment: $14,980.00 ➤ Closing costs: $3,500.00 ➤ Repairs: $8,500.00 ➤ Misc Other: $2500.00
 
 $29,480.00
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SLIDE 69

COCROI = ANNUAL CASH FLOW

TOTAL INVESTED CAPITAL

$63.30 X 12 ????? COCROI =

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SLIDE 70

COCROI = ANNUAL CASH FLOW

TOTAL INVESTED CAPITAL

$63.30 X 12 $29,480.00 COCROI =

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SLIDE 71

COCROI = ANNUAL CASH FLOW

TOTAL INVESTED CAPITAL

$759.60 $29,480.00 COCROI =

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SLIDE 72

COCROI = ANNUAL CASH FLOW

TOTAL INVESTED CAPITAL

$759.60 $29,480.00 2.57%

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IS 2.57% CASH ON CASH RETURN A GOOD AMOUNT OF CASH FLOW?

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TOTAL RETURN ON INVESTMENT

(now we’re getting somewhere…)

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LET’S LOOK AT AN EASIER AND FASTER WAY TO ANALYZE DEALS

www.BiggerPockets.com/ analysis

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SLIDE 76

MY DEAL ANALYSIS PROCESS…

It’s just mathematics…

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SLIDE 77
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MY DEAL ANALYSIS PROCESS

WHY AREN’T YOU BUYING MORE DEALS THIS MONTH?

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SLIDE 79

MY DEAL ANALYSIS PROCESS

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SLIDE 80

MY DEAL ANALYSIS PROCESS

➤ Analyze three deals every day (100 per month)

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MY DEAL ANALYSIS PROCESS

➤ Analyze three deals every day (100 per month) ➤ Make offers on 10% of them (10 offers)

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SLIDE 82

MY DEAL ANALYSIS PROCESS

➤ Analyze three deals every day (100 per month) ➤ Make offers on 10% of them (10 offers) ➤ Can you get a 10% acceptance rate? (1 deal)

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SLIDE 83
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SLIDE 84

“

When you define your process, and commit to it for an extended period of time, the results take care of themselves.

  • Hal Elrod

Author of The Miracle Morning
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This is not just theory.

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This is not just theory. This is how thousands

  • f real estate

investors, including myself, have found financial freedom.

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SLIDE 87

Two Ways to work this process:

Slow efficient

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SLIDE 88

So… here are three big questions:

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SLIDE 89

Will you start analyzing deals correctly?

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SLIDE 90

Will you commit to a process for analyzing deals regularly

  • maybe even every day?
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SLIDE 91

Will you do what it takes to achieve your financial goals?

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SLIDE 92

I don’t know why you came here today.

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SLIDE 93

I don’t know why you came here today.

Tired of working your full-time job Need to start preparing for your future retirement Tired of being a “wantrapreneur.”

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SLIDE 94

Our goal at BiggerPockets is to make you reach your financial goals through real estate.

So we’ve created some incredible tools to help you get there faster and with less pain.

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SLIDE 95

We realize real estate investing

  • ften feels like this:
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SLIDE 96

We want to help you feel like this:

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SLIDE 97

BiggerPockets

PRO

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SLIDE 98

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SLIDE 99

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SLIDE 100

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Find Lenders, Partners, Investors, Agents, and More Through BiggerPockets.com/meet

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SLIDE 101

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SLIDE 102

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Need a deal? Have a deal? Post 
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SLIDE 103

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SLIDE 104

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SLIDE 105

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Ask sensitive questions that you don’t want Google (or tenants,buyers,etc) seeing at 
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SLIDE 106

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Set up to 20 Keyword Alerts for all the topics you care about at www.BiggerPockets.com/alerts

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SLIDE 107

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SLIDE 108
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SLIDE 109

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SLIDE 110
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SLIDE 111

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SLIDE 112

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SLIDE 113

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SLIDE 114

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SLIDE 115

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SLIDE 116

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SLIDE 118

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SLIDE 119

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SLIDE 120

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SLIDE 122

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SLIDE 123

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SLIDE 126

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slide-127
SLIDE 127

Special Gift:

The

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WORKSHEET: www.BiggerPockets.com/909worksheet
slide-128
SLIDE 128

Special Gifts:

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(At the end!)

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SLIDE 129

Take Action Today! To Get These Discounts, Head to BiggerPockets.com/ProUpgrade

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