Day 3

Module: 1 — The Wealth Blueprint

Key Concept: You cannot grow what you do not measure. Today's exercise creates a complete picture of investable capital and borrowing capacity.

Before making offers, every investor must understand their current financial position with precision. Lenders, partners, and sellers all evaluate your financial capacity. More importantly, you must know your own limits to act decisively when opportunity appears.

The Personal Financial Statement

Assets — Everything You Own

• Cash and cash equivalents (checking, savings, money market)
• Retirement accounts (401k, IRA, Roth — note: early withdrawal penalties apply)
• Investment accounts (brokerage, mutual funds)
• Home equity (current market value minus mortgage balance)
• Vehicle equity
• Other assets (jewelry, collectibles, business interests)
• Total Assets: Sum of all categories

Liabilities — Everything You Owe

• Mortgage balance on primary residence
• Vehicle loans
• Student loans
• Credit card balances
• Personal loans
• Other debts
• Total Liabilities: Sum of all categories

Net Worth: Total Assets minus Total Liabilities

Investable Capital Calculation Not all net worth is available for real estate investment. Calculate your true investable capital:

• Cash and liquid savings: $______
• Home equity available via HELOC (80% of value minus balance): $______
• Retirement account loans (50% of vested balance or $50,000 max): $______
• Partner capital available: $______
• Total Investable Capital: $______

Debt-to-Income Ratio (DTI) Lenders calculate DTI by dividing total monthly debt payments by gross monthly income. Conventional investment loans typically require DTI below 43-50%. Calculate:

• Current monthly debt payments: $______
• Gross monthly income: $______
• Current DTI: _____%
• Maximum additional debt service lenders will approve: $______/month

The Capital Readiness Score Rate yourself 1-10 on each factor:

• Liquid reserves for down payment: ___
• Credit score (700+ = 10, 650-699 = 7, 600-649 = 5, below 600 = 2): ___
• Debt-to-income ratio (under 36% = 10, 36-43% = 7, 43-50% = 5, 50%+ = 2): ___
• Stable employment/income history (2+ years = 10, 1-2 years = 7, less = 5): ___
• Total Score: ___ out of 40 (32+ = excellent, 24-31 = good, 16-23 = needs work, below 16 = requires significant preparation)

Today's Action: Complete your personal financial statement, calculate investable capital and DTI, and determine your capital readiness score. Identify the specific steps needed to improve each score component.

Daily Checklist

• Read and study today's lesson
• Complete the Day 3 worksheet
• Apply the concept to your target market
• Document learnings in your investment journal

Revenue Connection

Completing today's work builds the foundation for accurate deal analysis that prevents costly mistakes and identifies profitable opportunities.