In real estate, cash is not king because you don’t actually need it to buy properties once you understand how to buy. This evening I had the privilege of having dinner with a veteran real estate investor who was a wealth of knowledge. He shared with me lots of stories including one of how he could have picked up a seven-figure property and doubled it within a few short years, and best of all it was an owner financed deal.
So what is “king?” Cash-FLOW is king. If you are investing in real estate, you want a return. While it’s nice to “fix and flip” or “buy low and sell high”, there is tremendous long term value in buying properties that generate cash flow. These could be single units or (ideally) multiple unit properties. Don’t forget to account for upkeep and property management when running your numbers. Bottom line is that you want to find properties that you can pick up in markets where the rent will be greater than the mortgage.
Don’t have money to play the real estate game? Help others find properties and get paid referral fees. You don’t need a real estate license to be a researcher. In fact, our team is currently seeking such properties in the Phoenix real estate market. If you know of any multi-unit properties that are owner financed and the owner wants to get out of the landlording business contact us - it’s worth a finders fee if we close the deal.
In closing, here is my analysis of real estate investments:
Fix and Flip a Property = Good
Buy Property at a Low Price & Sell at a High Price = Better
Buy a Property with Cash Flow = Great
Buy a Multi Unit Property with Cash Flow = Ideal / Optimal
Buy an Owner Financed Property with Cash Flow at the Right Terms = PRICELESS
If you want to learn how to find these properties and create cash flow, please register for one of our local real estate investing seminars or online webinars. You won’t regret it!
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