How to Make Sense of the Deal

Invest in hard assets

Cash is trash. Go illiquid. Invest in hard assets that won’t lose money, produces a monthly cash flow and has the possibility of appreciation in the future. Learn the reasons to invest and the most important number in real estate.

Cash is not king. Cash gets destroyed in value. A bank loans it out as fast as they take it in, because cash doesn’t retain its value.

If you have a little bit of money left over after your expenses, get rid of it. Invest it, otherwise the value will go down.

Investing can be simple. Real estate doesn’t require a college education or website, this business can’t be taken over, can’t be destroyed and will only increase in value.

You must remember scale when investing in multifamily. The most important number in real estate is the number of units. That’s the multiplier. Good number of units for your deals is 32 units, if that’s not possible, go to 16. Don’t try four. Four doesn’t give you enough scale If the market pulls back and it doesn’t provide enough rent, then that’s an issue… The more units, the lower my fees and expenses spread out.

Why invest?

1. Can’t lose money. As long as the property is not overleveraged you won’t lose money.

2. Cash flow. As it multiplies, it will generate wealth. Cash flow is king.

3. The possibility of appreciation in the future, based on the city, location, jobs and more will increase the rent rates and the value of the property will go up.

Since World War II ended, rents have gone up, so did the stock market, so did house values… The difference: apartments provide monthly cash flow, they are not speculation and they don’t trap your equity.

Real estate is a full-time game. Knowing everything in the market, the industry and what’s happening plus the terms, strategies and methods along with the talent and skill to make the most of this knowledge to create the best deals is not something that happens overnight and is not something that is easy to come by.


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