BiggerPockets Real Estate Podcast
Business:Investing
853: How to Make a 120% Return by Buying “Negative” Cash Flow Real Estate
“Negative” cash flow can help you reach financial freedom up to FIVE TIMES faster, so why are most investors ignoring low-to-no cash flow deals? For decades, cash flow has been king in the real estate investing realm. Investors were told NEVER to buy a rental property that didn’t bring in hundreds a month or at least break even. But now, this golden rule of real estate investing is broken, and there’s a FAR faster way to build wealth that sacrifices cash flow for something much more powerful.
And this isn’t just some hypothesis or “what if” scenario. We have three investors today showcasing three real estate deals, ALL with negative cash flow and ALL with huge equity upside, 100% (or greater) returns, or profits that far outweigh what most investors even dream of achieving on their real estate deals. And if you do just a few of these deals the right way, you could reach financial freedom in a matter of years, not decades, like today’s guests.
Join David Greene, James Dainard, and Mindy Jensen as they do their best to deprogram the masses from “cash-flow-only” investing and show you why negative cash flow isn’t always bad—in fact, it could be a sign of an unbelievable deal.
In This Episode We Cover:
What is “negative” cash flow, and why TOP investors go for these deals
ROE (return on equity): the one metric the ultra-successful pay attention to
How James traded $800 a month for over $300,000 in equity (with ONE property)
The danger of floating rate debt and how it can easily KILL your deals
David’s $100 negative cash flow deal that INSTANTLY made him $90K
The negative cash flow rules that you MUST follow
And So Much More!
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Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-853
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