Ultimate Coach – Cash Flow Terminology – 4th June 2025

In this week’s webinar you’ll join Ultimate Coach Michael Franks  for Part 1 of the Cash Flow Portfolio Building series.

Michael focuses on breaking down the essential financial terminology you need to accurately assess property performance and build a successful cash flow portfolio.

This is a foundational session that sets you up for the next parts of the series, where you’ll dive deeper into property analysis and practical application. Before you can build wealth confidently, you need to be able to speak the language, understand the calculations, and use the right measuring tools – this webinar gives you that starting point.

What you’ll learn in this session:

• Key Property Terms Explained: Michael walks you through the meaning of terms like gross rental income, net rental income, operating expenses, rental yields, and cash flow.
• The Importance of Accurate Calculations: Learn why you must use the same “yardstick” when comparing properties, and how gross and net yields can paint very different pictures.
• Understanding Cash Flow: Discover the flow from rental income to cash flow, and why net rental yield is far more important than gross yield when assessing property performance.
• Operating Expenses Breakdown: Get clear on what fixed and variable expenses you need to account for, including council rates, management fees, repairs, strata costs, land tax, and utilities.
• Loan Considerations: Understand loan types (interest-only vs. principal & interest), loan-to-value ratios, and how repayments impact your cash flow.
• Common Pitfalls: Michael highlights how misleading advertising often focuses on gross yield, and teaches you how to cut through the noise to find the true cash flow outcome.

Tools and Downloads:

As part of this session, Michael provides a Due Diligence Expenses Calculator Spreadsheet that you can download from the materials tab above. These tools are designed to help you:

• Gather accurate information for your own properties
• Analyse different property types
• Prepare for Part 2 of this series where you’ll work through real-life examples

Make sure you download the spreadsheet and start filling out the due diligence sheet for several properties – you’ll use this in the next session.

This webinar is perfect if you’re new to property investing or want to sharpen your understanding of cash flow analysis. It’s a must-watch if you’ve ever felt unsure about the numbers, confused by terminology, or worried about relying on inaccurate figures when making investment decisions.

This webinar will help to gain clarity, build your confidence and set a solid foundation for growing a cash flow-positive property portfolio.

Action Items

• Gather information on the operating expenses for a rooming house in Western Australia and be prepared to share it in the next webinar.
• Print out the due diligence checklist provided and fill it out for potential investment properties.
• Review the spreadsheet tool that will be provided with the webinar recording and be ready to use it in the next session.