Explainer video: 3 advantages in 4 minutes

Tip! Don’t miss anything, subscribe now on YouTube: Lukinski!

Advantage 1: protection against inflation

Inflation can quickly devalue your savings. For example, if you have €100,000 and inflation is at 5%, you lose 5% of your money every year. After two years, your €100,000 is worth only €90,500. Real estate offers effective protection against inflation, because rents usually rise with inflation. If inflation is at 5%, your rental income also rises by 5%. This means you benefit from rising rental income in the long term, and your investment is protected against the effects of inflation.

• Assets: €100,000
• Inflation 5%, purchasing power after 1 year: €95,000
• Inflation 5%, purchasing power after 2 years: €90,500
• …

Bonus tip! The effect of inflation on loans and repayment

Suppose you’ve taken out a loan of €100,000. In times of inflation, your money gradually loses value. This means your money’s purchasing power decreases while prices for goods and services rise.

Here’s the interesting part: while prices rise and incomes increase, your loan’s monthly repayment rate stays unchanged. This means that over time you keep repaying the same fixed instalment, which decreases in real purchasing power.

This has two important effects:

Your debt gets “devalued”

Inflation causes your debt to decrease in real terms. This means the originally borrowed loan amount of €100,000 is worth less in real purchasing power over time. In other words, you effectively repay less once you factor in inflation.

Rising income can make repayment easier

If your income rises over time due to inflation, it becomes easier to manage your monthly repayment instalment. This means you may have more financial leeway to make other investments or reach your financial goals faster.

Advantage 2: your tenant pays off your investment

One of the best features of real estate investments is that your tenants pay off your investment. The bank grants you a mortgage loan that you don’t have to earn yourself. Your tenant pays the monthly rent, which covers part of the financing. Once the financing is paid off, the property belongs to you entirely. On top of that, you benefit from the appreciation of the land. Even if land prices rise by only 5% per year, these gains add up over the years to a substantial sum of additional wealth.

• You only need 20% equity
• The bank provides the rest (debt capital)
• Who pays your loan? Your tenants!

Remember this sentence forever:

Your tenant pays off your investment!

Advantage 3: passive income

As soon as your monthly rental income covers your monthly costs, you generate passive income. This means you earn extra money every month without having to work actively. This passive income can help you achieve financial independence and give you the freedom to enjoy more of your life. For example, if you have monthly costs of €1,000 and monthly rental income of €1,100, you generate a monthly passive income of €100.

• “Costs” of your property p.a. = €12,000
• Net cold rent p.a. = €13,200
• Surplus = €1,200

Why does a property make sense as a capital investment?

Hopefully you no longer ask yourself this question after these 3 key advantages!

Real estate investments offer effective protection against inflation, the opportunity to build wealth while your tenant pays off the investment, and the chance of passive income. If you enjoyed this video, don’t forget to like it and subscribe to my new channel. Stay tuned for more insightful content on real estate investing. Thank you for watching!

Tip: Capital investment guide

Where to invest? A, B or C locations

Where to invest? The 3 location types quickly explained:

1. Properties in A-locations promise high profits on sale, but rental income often doesn’t cover the costs Primary goal: profit on sale
2. Properties in B-locations offer positive cash flow and are ideal for beginners, with positive economic development and good infrastructure Primary goal: positive cash flow
3. Properties in C-locations carry risks with poor prospects, low income and high crime, which can lead to falling prices and vacancies Primary goal: low purchase price, high yields

Explainer video: Real estate location at a glance

My walking route through Inglewood

From Phil’s Barbecue to the Mega Donut through Inglewood.

A-location: high profit on sale, but…

In my video I explain what it means to invest in an A-location. These locations, such as in Munich, Berlin or Hamburg, often promise high profits on sale thanks to the constant increase in land prices. However, rental income here can’t always cover the costs (yield), which means you pay extra every month. This is called investment property in an A-location.

• A-location stands for prestigious locations in cities like Munich, Berlin and Hamburg
• High profits on sale beckon here, as land prices rise continuously
• However, rental income often can’t cover the high costs, which can burden investors on a monthly basis
• Investment properties in A-locations are known for long-term appreciation, but require patience and capital

B-location: positive cash flow and ideal for beginners

The B-location is a different story. Here, rental income is often sufficient to cover the costs (repayment, interest, maintenance reserve) and even generate positive cash flow. These locations offer positive economic development, a growing population and good infrastructure. B-locations are often found in the commuter belt around A-locations or in individual major cities and are an ideal investment, especially for beginners.

• B-location refers to locations in the commuter belt of A-locations or in up-and-coming major cities
• Here rental income is often sufficient to cover costs and achieve a positive cash flow
• These locations offer positive economic development, growing population figures and good infrastructure
• B-locations are ideal for beginners looking for stable investment opportunities

Invest in A-location or B-location?

• A-location = profit only on sale (annual net cold rent < cost of the property)
• B-location = direct positive cash flow (annual net cold rent > cost of the property)

C-location: don’t underestimate the risk

Then there’s the C-location, and here you really need to be careful. These are districts or cities such as Duisburg Marxloh, where prospects are poor, income is low and crime is high. Nobody wants to buy here, and prices are often cheap. However, there’s a risk that land prices will stagnate or even fall, offering no protection against inflation. Add to that the local clientele, vacancies and possibly rent nomads.

• C-locations are risky locations with unfavourable prospects, low income and high crime
• Investors might find cheap purchase prices, but there’s a risk that land prices will stagnate or fall, with no protection against inflation
• Vacancies and possible rent nomads are typical of C-locations, and potential tenants may be hesitant
• These locations require comprehensive risk analysis and can be challenging for inexperienced investors

More details in the video!

If you want to know exactly how to assess the location of a property and decide where and when to invest, check out my new video. I give you all the important information and advice you need to make smart decisions in real estate investment.

Don’t forget to subscribe to my real estate YouTube channel so you don’t miss any updates. The world of real estate investment is diverse, and I’m happy to help you understand it better!

Lukinski YouTube: yield, investment property & co.

Discover with me the key factors, metrics and fundamentals of real estate investment. Compared to other forms of investment, real estate offers a ‘safer’ way to invest capital with consistent returns and long-term appreciation. Want to invest your money wisely? My recommendation: real estate, passive income and a good life.

• Lukinski YouTube

Why your own real estate software instead of classic content?

Most real estate websites consist of two things: listings and guide articles. The problem: listings become outdated, and texts compete with thousands of similar articles. A small, specialized piece of software, on the other hand — such as a purchase price factor calculator or a capital gains tax calculator — solves a specific task and keeps the user on the site longer.

“A single well-placed calculator typically generates 4 to 6 times the amount of organic traffic of a comparable guide article over 24 months — and attracts backlinks from sources that would never link to a pure blog post: tax advisors, law firms, universities.”

The five strategic advantages

The value of a calculator does not lie in the code itself, but in the combination of user engagement, backlink magnetism, and lead quality. Exactly these dimensions make the difference to classic content — and justify the higher initial effort.

• Engagement Time: Tools keep users engaged for 3–8 minutes — texts on average under 90 seconds.
• Backlinks: Calculators are organically linked because they are citable.
• Lead Quality: Someone who runs a cash flow calculation is a potential buyer — not just a random reader.
• Repeat Effect: Users come back for the calculator, not just for a one-time read article.
• Scalability: A well-built plugin can be cloned for 10 additional topics.

Build vs. Buy: What does custom Real Estate software really cost?

The cost issue is the most common stumbling block. Those who used to pay 15,000 € for a custom plugin can now achieve a fraction of that cost with ChatGPT, a WordPress setup, and a few hours of time. The key is choosing the right path among four options — and having a realistic view of ongoing maintenance costs, which are consistently underestimated in every calculation.

Four Paths to Your Own Real Estate Software

The following overview shows the typical cost ranges, implementation durations, and SEO values of the four most common implementation options — from a standard solution in the marketplace to a custom agency development.

For a single computer — for example, to calculate gross yield or calculate net yield — self-building is almost always worthwhile. For more complex systems (CRM, portal integration, multi-stage evaluation logic according to income value method), a freelancer or agency remains sensible.

Hidden costs — what the maintenance fee really covers

The “100–300 € per year” figure is not arbitrary. It covers specific costs that every tool provider eventually pays — either with money or with their own labor. Whoever ignores this will have a dead plugin in the backend after 18 months.

• WordPress-Core-Updates: Major releases occasionally break the Shortcode API — 1–2 hours of adjustment per year.
• PHP version jumps: Hosting providers enforce PHP 8.x → 8.y every 2–3 years, deprecated functions must be replaced.
• Formula updates due to legal changes: Land transfer tax rates, inheritance tax exemptions, depreciation rates change.
• Security patches: Mandatory for input forms — regularly check for XSS and SQL injection vectors.
• Browser compatibility: Chrome/Safari updates change CSS behavior (Flexbox quirks, input styling).

Step-by-step: Building a WordPress plugin with ChatGPT

The process is straightforward — provided you structure the queries to ChatGPT correctly. Those who prompt without a plan get code deserts in return. Those who think in clear modules have a working plugin within an afternoon. The following workflow has been proven on over 30 productive computers.

Phase 1: Concept and Data Model

Before a single line of code is written, it must be clear: What input fields does the calculator need? What formula is used? What output should the user see?

• Define input: Purchase price, rental income, calculate purchase-related costs, Equity.
• Determine formula: e.g. Gross yield = (Annual net cold rent / purchase price) × 100.
• Plan output: Number, traffic light rating, comparison to market average.
• Consider edge cases: What happens with zero inputs or negative values?

Phase 2: Code Generation with ChatGPT — concrete example

Now ChatGPT comes into play. The key trick: don’t prompt “Write me a plugin,” but module by module. First, shortcode registration, then HTML form, then calculation function, then CSS. Test each module individually. This is what a productive prompt for module 1 looks like:

Prompt example: “Write me the PHP code for a WordPress plugin with the shortcode”[bruttorendite_rechner]. Three input fields: Purchase price (Euro), Annual net cold rent (Euro), Purchase additional costs in percent (Default 12). Formula: Gross yield = (Annual rent / (Purchase price × (1 + additional costs/100))) × 100. Output as rounded number with two decimal places plus traffic light rating: red below 3 %, yellow 3–4.5 %, green above 4.5 %. With validation against empty and negative inputs. Code WordPress-compliant, escaping with esc_attr() and esc_html(). Plugin header included.”

From this single prompt arises a functional skeleton of 60–90 lines. Modules 2–4 (CSS styling, AJAX refresh without reload, FAQ block integration) follow the same pattern. Important: Test locally after each module before prompting the next one — otherwise, follow-up errors occur that ChatGPT overlooks in larger code blocks.

Phase 3: SEO optimization of the tool

A calculator without an SEO framework won’t rank. Therefore, it should include: H1 with keyword, 500–800 words of explanatory text, FAQ, internal linking to related calculators such as Calculate Required Equity, Calculate Notary Fees, or Rental Yield. Enhance with Schema.org markup as `HowTo` or `FAQPage` — this brings rich snippets into the SERP.

Phase 4: Tooling and Test Stack

Anyone building professionally needs a small stack. Practical recommendation: ChatGPT Plus for code quality, local WordPress environment, version control, and a code editor with PHP linting.

• ChatGPT Plus or API: Free version is sufficient for hobby use, but for productivity, Plus or API access with current models is recommended.
• Local Test Environment: Local by Flywheel (Mac/Win) or XAMPP — avoids live crashes.
• Code Editor: VS Code with PHP Intelephense — catches syntax errors before upload.
• Version Control: Git repository (even private) — commit each ChatGPT iteration cleanly.
• Plugin Boilerplate: WPPB.io as a starter template, saves 2–3 hours of setup.

Link building with your own tools: The “Investment” strategy

This is where the real leverage lies. As described in the guide to the market situation when buying real estate, reach is increasingly shifting towards tools and data. Whoever builds a calculator for a niche topic — such as calculating prepayment penalties or calculating the speculation period — becomes the first point of contact for tax advisors, law firm blogs, and comparison portals.

The backlink mechanics in detail

Backlinks don’t happen by chance — they follow clear patterns. Tax or legally relevant calculators are especially frequently linked because they simplify client clarification and save advisors time. Exactly these sources are worth their weight in gold from an SEO perspective.

• Tax advisor blogs: link calculators for complex topics like Inheritance tax calculator according to § 13 ff. ErbStG.
• Law firms: use external tools for client clarification.
• Forums and Reddit: calculators are shared in discussions, texts are rarely linked.
• Comparison portals: list calculator providers — often with a Do-Follow link.
• Universities/colleges: lecturers link practical tools in scripts.

Outreach template that works

“Build a tool and wait” doesn’t work. The first 10–20 backlinks must be actively acquired. The following email template has achieved response rates between 12 and 18 % in its own outreach campaigns — five times higher than generic link requests.

Subject: Free calculator for your contribution to[Thema X]

Dear[Name],

in your

]]> https://lukinski.com/real-estate-youtube-learn-the-capital-investment-1x1-investment-explained-in-a-nutshell/ Sat, 14 Oct 2023 09:00:30 +0000 https://lukinski.de/real-estate-youtube-learn-the-capital-investment-1x1-investment-explained-in-a-nutshell/ Real Estate 1×1 on YouTube – Your key to financial freedom! ð¡ð¼ On my YouTube channel I give you a deep insight into the exciting world of real estate as an investment. Whether you’re on your lunch break, relaxing at home, or on a business trip, you’ll get comprehensive knowledge that will help you with your real estate investments. We offer free online courses that teach you all about rental yields, financing, site selection and more. We’ll show you how to calculate rental yields, calculate annual rents and make smart investment decisions. Just like my motto: Lukinski, let’s go! Visit my YouTube channel now for valuable real estate investing information ðð YouTube Real Estate Investment.

Examples: Detailed video explanations

A picture is worth a thousand words! Here are some examples:

Real estate acquisition: How to get cheap real estate offers

The real profit is in the buying, which is why real estate canvassing is such an important topic in your real estate investing journey. On YouTube, I share acquisition tips, from digital channels to ringing owners (cold calling).

First of all, it’s important to make it known that you are buying real estate in region X! Family, relatives, friends, acquaintances, colleagues, all these are strong multipliers for you. As soon as someone hears something, you have a tipster.

Now on YouTube!

Passive income: Wealth accumulation through rental income

Passive income is a goal that many people strive for, and real estate offers a proven method to achieve this goal. Imagine earning 5,000 euros a month alongside your job without having to actively work. What freedoms would you enjoy with that extra income? Many investors rely on real estate to achieve precisely this financial independence. One advantage of real estate as an investment.

• Your wealth grows thanks to rental income
• Additional income – passive income
• Sense of financial security

Real estate as inflation protection: value preservation

While your money loses value over time due to inflation, real estate increases in value, as does rental income. What’s special about this is that your monthly repayment remains stable. This is a key advantage that you can learn about in detail on TikTok’s real estate investing section.

• Your property becomes more valuable in the long term
• Increasing rental income over time
• Stable repayment rate – your financial basis

Apartment vs. house: The advantage of an apartment

Buying a condominium can be a smart choice, especially for first-time real estate buyers. By buying an apartment, you become part of a condominium owners’ association (WEG), which means that many costs are borne jointly. Let’s say in an apartment building with five parties, you only pay 20% of the common expenses incurred. This leads to considerable financial savings.

• Be part of a homeowners association
• Share costs – e.g., heating system

Tips in a few seconds, follow me on YouTube!

Long-term financing of capital investments

Investors often choose long-term financing over 30 or 35 years. This creates liquidity for further investments. Instead of paying the entire purchase price yourself, you can take out a loan from the bank and usually only contribute 20% equity. This gives you the opportunity to own several investment properties and profit from the returns.

• Creation of liquidity for future investments
• Inflation ensures rising assets while redemption remains constant

Buying in A-location and B-location: The difference

In the real estate industry, locations are often divided into A, B and C locations. On TikTok, I explain the basics and analyze the differences, advantages and disadvantages of these locations. Stay tuned to gain valuable knowledge about real estate investing and pave your way to financial freedom.

Investor Stories: Learning from professionals

You’ll find lots of investor stories on my blog, a few I’m doing for LinkedIn now of course! Like here, the Hollywoodland.

Work Life Balance: From the road

Little insights from my favorite places, cafes!

At Charly Sheen’s Pool

If you’ve made it this far, I can show you this too, from Malibu!

Subscribe to YouTube now!

Don’t forget to subscribe to my channel to stay up to date and benefit from valuable real estate investing tips.

Don’t miss a pool! Follow me on YouTube now!

]]> https://lukinski.com/employee-workshop-capital-investment-internal-1-location-2-yield-3-investment-decision-4-financing/ Fri, 13 Oct 2023 00:47:26 +0000 https://lukinski.de/employee-workshop-capital-investment-internal-1-location-2-yield-3-investment-decision-4-financing/ When it comes to capital investment and investing, we can sit back comfortably, grab a piece of paper, and invest a little time. Together, we’ll look at the fundamentals of real estate investing and understand how they can support us on the path to long-term financial success.

Capital Investment on 1 Sheet of A4 Paper

Without preparation, straight off the cuff, capital investment on a single A4 sheet.

Recorded spontaneously! With this spontaneous mini workshop, I wanted to show an employee how an investment decision is made in its most basic form: location, yield, financing.

1. Location: A, B, and C – Which Fits You?

The location of a property is a decisive factor for your investment success. Let’s explore the three common location types you should know:

A-Location: Expensive, but Profitable

The A-location stands for prime locations. Here, properties often carry a hefty price tag, but they typically offer excellent long-term appreciation. Demand in these areas is high, and if you invest in an A-location, you can benefit from rising property prices and rental income. Think of sought-after inner-city areas or highly popular residential neighborhoods.

C-Location: Cheap, but Risky

The C-location represents low-cost properties, often located in less developed or challenging areas. The entry price may be temptingly low, but C-locations typically carry higher risks. Vacancies, low rental income, and loss of value are potential challenges. Investments in C-locations often require extensive renovations and a high level of commitment.

B-Location – The Perfect Compromise

The B-location is the gold standard for many investors. Here you’ll find a combination of reasonable prices and promising long-term profit prospects. B-locations are often found in neighborhoods that are still developing but already show a certain charm and potential. If you’re looking for the ideal balance between risk and return, the B-location could be the right choice for your entry into capital investment.

I also have a video on location for you:

• Real Estate Location: Explainer Video

2. Yield: How Much Is Enough?

Yield is a key factor in evaluating your real estate investment. You should constantly ask yourself:

“What yield do I need, and what can I expect from my property?”

Calculating the Yield

To determine the yield, you add up all income from your property (rental income, tax benefits, etc.) and subtract all expenses (mortgage payments, maintenance costs, insurance, etc.). You then divide the result by your initial investment amount (including all costs for the purchase and renovation). This yield should meet your expectations and be profitable in the long term.

• Yield Calculator
• How High Should the Yield Be: Explainer Video

3. Investment Decision: Calculate Everything from Your Desk

An exciting aspect of real estate investing is that you can make many decisions comfortably from your desk. You don’t have to be on site to assess a property’s potential. Here are some important steps for your investment decision:

Market Research: Finding the Rental Price

Use tools and software to analyze your financial situation. Calculate your yield expectations and the anticipated costs. You don’t need expensive tools for this — use real estate portals, as shown in the video, to research current asking prices within seconds.

4. Financing: Understanding the Details

Financing your capital investment is another crucial aspect. Here are some factors you should consider:

Equity: As Little as Possible

The amount of equity you bring into your investment affects your financing options and your yield. The more equity you have, the less you depend on borrowed capital.

As an investor, you want to keep as much liquidity as possible, which is why you finance with as little equity as possible.

Appreciation: Over Time

Real estate has the potential to gain value over time. This can be an important factor for your long-term yield.

Inflation: Working in Your Favor

The effects of inflation should also be considered. Inflation can erode the purchasing power of your rental income over time, so it’s important to factor this into your calculations.

Overall, the four fundamentals of capital investment and investment decision-making — location, yield, investment decision, and financing — are crucial to your success as a real estate investor. By understanding and carefully weighing these aspects, you can make better decisions and invest successfully in your investment portfolio.

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