The Latest From Buddy Broome Invest

How to Know if an Upgrade is Worth the Money

One job of a landlord is to makes decisions on repairs and improvements.  Typically, repairs have to be done as they make the unit habitable (e.g., a hole in the roof). However, improvements are a different story as they are not always needed to make the unit...

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3 Questions That You Should Ask Every Seller

When I was younger, one of my favorite shows was “The Joy of Painting” by Bob Ross.  Some of you might remember this show as Bob Ross, a mild mannered painter with a gentle voice, would always start the show with a blank canvas in front of him. Then, little-by-little...

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Balloons are for the Circus

Sometimes I will get pitched properties with seller financing that have a balloon mortgage. The balloons for these deals typically come due around 5-10 years from the time of the sale. For those of you are are new to investing, a balloon means that the entire balance...

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3 Tips to Help You Rent Your Place Fast!

When I first started off as a landlord, I had a very difficult time finding qualified tenants.  The reason that I had a hard time finding qualified tenants was simple: I had no applicants. This resulted in units that would sit vacant for months. Anyone who has been in...

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How to Make a Property Cash Flow +

Oftentimes people want to purchase rental properties, but they may be having a hard time finding a property that positively cash flows. Negative cash flowing properties create a problem because ultimately it results in cash leaving the buyer's pocket and destroying...

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How to Really Grow Your Nest Egg (Without Speculating!)

The goal has many different names: retirement, financial freedom, financial independence, to name a few.  However, regardless of what you call it, it all comes down to the same thing, people want cash flow to meet their expenses so that they can live life on their...

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It Ain’t the $5 Latte…

One of my favorite movies is the 80's cult-classic about high school wrestling, “Vision Quest.”  In one of my favorite scenes from this film, the main character Louden Swain, played by the amazing Matthew Modine, is seeing his friend Elmo, played brilliantly by the...

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Is Your Investment Beating Inflation?

“Back When I was a kid…" This is something that you may have heard quite a bit growing up. Heck, you may have used this line yourself 😉 When we typically hear this line it is followed immediately by something like, “I walked barefoot to school, in the...

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Why Banks Love 15 Year Mortgages (& Why You Should Not!)

"That’s alright, Br’er Fox - hang me if you gotta.  But please, please don’t fling me in that briar patch" - Br’er Rabbit to Br’er Fox in Disneyland’s log-flume attraction, “Splash Mountain” The quote above is from one of my favorite rides at Disneyland, and it takes...

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Give Me a Lever….

"Give me a lever long enough and a fulcrum on which to place it, and I shall move the world." - Archimedes Last week, the Dow Jones Industrial Average broke the unprecedented 20,000 point barrier.  To give some historical perspective, in January of 1987, the Down...

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Don’t Be Told What Your Yield Should Be!

What Society Tells Us about Yields One concept that I hear a lot among investors and non-investors alike is the belief that they cannot set their own yield (aka return on investment).  Rather, society has accustomed us to believe that the yield is set by banks,...

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“Light” the Cash to Close a Deal? Try This!

Have you ever had a deal where you were "light" the funds to close ("light" can mean that you don't have the funds or that you simply did not want to cut a check;-)?  Here is one tool that I have used in the past to help my parents close a deal that solved this...

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How Big Will Your Baby’s Nest Egg Be?

Our goal as investors is to get money to work for us rather than the other way around.  When we have money work for us, the principles of investing are able to turn a seemingly small amount of money into a huge amount of money with sometimes little effort on our...

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Looking for that Perfect Holiday Gift?

It is the time of year when people are wearing funny sweaters, drinking eggnog, and buying gifts for friends and family.  While the first two of the previously mentioned activities are things people are pretty excited about doing, the third is...

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When is a Dollar More Than a Dollar?

Financial freedom is passive cash flow from assets that are greater than your monthly expenses. When looking at this formula, typically people focus on increasing the passive income from assets, which is essential. However, it is just as important to keep expenses to...

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Does Your Dog Understand Your Investments?

Having grown up in South Jersey with half of my family being from Northeast Philadelphia, the dish "scrapple" was a mainstay at family get-togethers.  For those not from the greater Philadelphia region, the best way that I can describe scrapple is a brick of...

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How to Compare Apples & Oranges

Have you ever been presented an investment opportunity and had no idea how to determine whether the deal was good or not?  When we are presented investments, we are often forced to examine options that have many different numbers and these different numbers make it...

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Can You Sleep When the Wind Blows?

A wonderful story I once read was of a farmer who went through a succession of farmhands whom he found to be inept.  Then, one day he hired a new worker and everything was going well until a terrible wind storm broke out in the middle of the night. The storm brought...

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You Won the Lottery, Now What?

Oftentimes, I will discuss “what if” scenarios that are not so pleasant (e.g., what if the investment goes belly-up? what if the market crashes? Etc.), in this blog entry, I am going to focus on a more upbeat “what if,” as in “what if you win the lottery?”  When...

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…It’s Gotta Happen

Throughout my life I have been fortunate to be influenced by a great many people, including teachers, coaches and mentors.  However, the person who has had the biggest influence on me has been my dad, Bud Broome.  While there were many lessons that he taught me, I...

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Cuanto Tiempo para Pagar tu Tarjeta de Credito?

¿Tienes una tarjeta de crédito y desea saber cuánto tiempo va a tomar para pagarla? En este ejemplo, Andres Britto y yo te mostramos cómo determinar ese número. https://youtu.be/QLbLfzEBydo   My Dog Piglet Wants to Know If You Want to Receive Valuable Tips, Strategies...

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What is Risk?

What is risk? Society has an idea of what is risky and what is safe. However, oftentimes when we examine those ideas we find that what appears to be risky is actually safe, and what we thought was safe is actually fraught with risk. As investors it is imperative for...

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Why Should You Go to an Investing Class?

Many people want to invest, but typically the path is either:  1. They give all of their money to someone else and let them handle the investing (while hoping that that person knows what he/she is doing & is honest) or 2. Buy an "investment" without any knowledge or...

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How Much Will You Receive Every Month?

When we look at investing, we often get distracted by things like price, yield, etc.  However, when we really boil down why we are investing, the true reason is that at the end of the day, we want cash flow.  You may be thinking to yourself, "Buddy, cash flow is nice,...

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But I only get 1% interest from my CD

Are you looking to invest, but are frustrated with your options? Bank CDs are only giving 1% right now.  As the historical rate of inflation is higher than 1%, you know that CDs will not cut it.  So, what are your options? Believe or not, there are investors who are...

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Calculator Challenge: How much would you pay for $50,000?

A dollar does not always equal a dollar.  To put this another way, a dollar today does not equal a dollar tomorrow and does not equal a dollar 30 years from now.  All of those dollars, while they are the same size, are all valued differently because of the time value...

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The 3 (+1) Questions to Ask Before Any Investment

Have you every been presented with an "investment opportunity" but you had no idea as to whether it was a good deal or not?  In my latest video I discuss the 3 (+1) essential questions to ask before every investment to help to see whether you want to go forward....

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What happens if you don’t get paid?

I was recently having lunch with a friend and the discussion turned to rental properties.  During this conversation, I discussed some of my biggest blunders and craziness as a landlord, which included an exploding toilet requiring a hazmat company cleanup, gang...

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How Long Until Retirement?

We all want to be able to retire/be financially free, but do you know how long it will take?  In this post I show you how our friend "Marty" determines this number.  If you have different numbers than Marty, no problem, simply plug your numbers into your calculator to...

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How Do You Analyze Your Investments?

Ever have an investment, but were not certain whether it was good or not? In this video I show you how to calculate your return on investment ("ROI") so that you are not having to guess with your investment.  #calculateyourwaytofinancialfreedom...

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A Fast Nickel vs. A Slow Dime

Greetings!! I was recently reminded of a very important concept that, ironically enough, I preach to others: The velocity of the money is often more important than the amount of the money.  A couple of weeks ago, I was completing a deal, and I realized at the last...

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How Much is Still Owed?

Atticus purchased a home 5 years (60 months) ago and he is contemplating refinancing his home. However, he wants to know what his current mortgage balance is before he speaks to the bank so that he does not have to rely on bank telling him the number.  When Atticus...

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It Takes a Monster….

I recently saw the comic book movie, “Avengers: Age of Ultron.”  The plot to this movie involves t he main character Tony Stark (aka “Iron Man”) who is played by Robert Downey Jr., creating a robot named “Ultron,” which Tony envisions to be a protector of the world. ...

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Watch the Seed Grow

Chip wants to have a $1,000,000 in 30 years.  If Chip is able to make his money work at 15% interest, and he only makes a one time investment today with no more contributions later, how much must he invest today to have $1,000,000 in 30 years? Answer:  (These are the...

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What is the Interest?

Sammy is looking to borrow money and agrees to borrow $1,000 from Tommy.  Sammy says that he can pay Tommy back $93/month for the next 12 months.  How much interest will be paid on this loan? Answer:  Buttons to enter into your HP 10bii N (number of months) = 12 I/YR...

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How Long til That Dream Vacation?

Sara & Jerry have been working extremely hard at their 9 to 5 jobs and they want to go on a vacation to get some well deserved rest & relaxation.  They have decided that they are going to a secluded beach resort to fulfill this goal and the vacation that they want...

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Back When I Was a Kid That Cost….

Theodore purchased a new car in May of 1956 for $2,500.  Theodore wants to know what the equivalent of $2,500 would be today.  Assume that there has been an average rate of inflation over this time of 3.2%.  With this assumption, what would the equivalent value of...

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How Much Will Your House be Worth?

Arthur purchased a rental property today at the fair market value of $200,000.  Arthur wants to estimate the value of the property in 10 years.  Arthur assumes that his property will appreciates at a rate of 3.5% interest.  With these assumptions,  what can Arthur...

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¿Cuánto dinero recibirá?

Ana busca un mejor retorno sobre su dinero y generar más flujo de caja de lo que ella actualmente obtiene en el banco. Actualmente tiene un CD de $100,000 en el banco. Actualmente le están pagando un retorno de un 1% de interés al año. Ana decide que ella quiere...

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¿Qué Grande de una Casa Puedes Comprar?

Miguel está buscando una casa para comprarla. Está determinando que tan grande él puede tomar una hipoteca (y consecuentemente la casa). (2) El ha examinado su presupuesto y determine que puede hacer pagos mensuales de $1,500. Miguel también ha estado investigando...

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¿Qué Grande Será la Hipoteca?

Maria está interesada en comprar una propiedad para rentar como parte de su plan de retiro. Encontró un complejo de 4 con una renta bruta de $4,000/mes. Asumiendo una proporción de gastos de un 50% para la propiedad (significa que ese 50% de la entrada bruto se...

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¿Quieres Pagar tu Tarjeta de Credito en Total?

Rafael quiere saldar su tarjeta de crédito. Actualmente debe $5,000 en su tarjeta y el interés en la misma es de 18%. Rafael realizará pagos mensuales de $300 hasta que la tarjeta queda totalmente pagada. ¿Qué tiempo le tomará a Rafael hacer estos pagos? Más abajo...

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How Much Are Your Car Payments?

Katie is looking to buy a car and is shopping around one day.  The dealer pitches Katie on the idea of buying a car with a car loan.  Katie has no interest in getting a car loan as she despises consumer debt, but she likes practicing with her calculator and wants to...

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How Hard Does Your Money Have to Work?

How hard does Jack's money have to work?  Jack is hoping to retire in 20 years.  Jack has determined that to retire his nest egg needs to be $750,000 in order to produce enough income for him for the rest of his life.  Jack currently has $10,000 saved for retirement...

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How Much for that Mortgage Note?

Albert is tired of getting the 1% return that he has been getting at the bank and is looking for a new investment vehicle.  He hears about purchasing mortgage notes and decides to learn more about investing in notes.  After doing a considerable amount of research and...

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How Much Cash Flow Can I Get?

Cindy is looking to get a better return on her money and generate more cash flow than she currently gets at the bank.  She currently has $100,000 that she has in a CD in the bank.  Right now that CD is giving her a return 1% interest per year.  Cindy decides that she...

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How Big of a Home Can You Afford?

Michael is looking to purchase a home.  He is trying to determine how big of a mortgage (and consequently home) that he can afford.  He has examined his budget and has determined that he can make monthly payments of $1,500/month.  Michael has also been shopping...

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How Much Will Your Nest Egg Grow?

Ana has started working and is going to start saving right away for her retirement.  She has examined her budget and she can put away $550/month.  Additionally, she believes that she is able to to make her money work at 6% interest. Assuming that Ana starts with...

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How Long to Pay Off Your Credit Card?

Frank is looking to pay off his credit card.  Frank currently owes $5,000 on his card and the interest on his card is 18%.  Frank will make payments of $300/month until the card is paid in full.  How long will Frank be making payments? Below are the key strokes to...

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Cash Flow for Life

Melissa has owned a rental property for 30 years and she loves the cash flow, but is tired of the management.  She is looking to sell her property. Melissa prefers to have a steady stream of income for the rest of her life rather than a lump sum of cash in the bank...

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A Great Investment Right in Your Backyard!

When people think about investing, they typically think about things like stocks, bonds, real estate, etc.  The truth is that there are amazing investments all around us everyday, we simply have to open our eyes to see it. Here is an example of an everyday...

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How Big of a Mortgage Can the Property Support?

Have you every wanted to buy a rental property, but were not sure how to figure out how much a mortgage the property could support and still before becoming negative cash flow (meaning that the rents pay for everything)?  Check out this simple example showing how to...

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