E36: Here's Why We Didn't Buy & Hold Our Most Recent Deal
Cashflow Real Estate & Money Show with RJ Pepino and Dave Payerchin
Release Date: 11/29/2024
Cashflow Real Estate & Money Show with RJ Pepino and Dave Payerchin
In this episode, we dive into a recent property acquisition and explain why we decided not to keep it as a buy-and-hold investment. Through a detailed breakdown, we reveal the numbers, considerations, and strategic thinking that led to our decision. From understanding market dynamics to evaluating cash flow, we share the lessons learned to help you avoid common mistakes and make smarter investment decisions. Whether you’re an experienced real estate investor or just getting started, this episode offers invaluable insights into the nuances of deal analysis, the importance of cash flow, and...
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In this episode, we break down a recent CNBC article that explores how a Trump presidency could influence the U.S. housing market. We dive into Trump’s key promises, like increasing housing supply through deregulation and opening federal lands for construction, and the potential impacts of immigration policies and tariffs on construction costs. But it’s not all straightforward—there are some major challenges and contradictions to consider. Plus, we discuss the potential effects on interest rates and the possibility of new financing options to make housing more affordable. Join us as we...
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info_outlineCashflow Real Estate & Money Show with RJ Pepino and Dave Payerchin
In today’s episode, we dive deep into the heart of real estate investing: finding the right location for a profitable rental property portfolio. I’m sharing insights live from Florida while on a personal trip, and today’s topic is all about understanding the real importance of location, choosing the right asset class, and knowing where buy-and-hold strategies work best. We discuss why affordable markets often outperform high-dollar areas for long-term rental gains, the critical role of having a dedicated team, and the need to target landlord-friendly states. Plus, I’ll give you a sneak...
info_outlineIn this episode, we dive into a recent property acquisition and explain why we decided not to keep it as a buy-and-hold investment. Through a detailed breakdown, we reveal the numbers, considerations, and strategic thinking that led to our decision. From understanding market dynamics to evaluating cash flow, we share the lessons learned to help you avoid common mistakes and make smarter investment decisions.
Whether you’re an experienced real estate investor or just getting started, this episode offers invaluable insights into the nuances of deal analysis, the importance of cash flow, and how to align each deal with your broader goals. Plus, we highlight an alternative strategy that could turn a potential loss into a profitable opportunity.
Episode Highlights:
[1:30] - Why every investor should ask, “Should I keep this property?”
[5:25] - Understanding the four key metrics that drive decision-making: ARV, rehab costs, purchase price, and rental potential.
[12:10] - Breaking down the numbers: Why this property wouldn’t cash flow even with a strong rental market.
[18:30] - The hidden costs of holding: Taxes, utilities, and how they eat into your bottom line.
[27:40] - The “wholetail” strategy: What it is and how we’re leveraging it for this deal.
[34:00] - The importance of a solid sales process and why it’s essential for deal conversion.
[38:15] - How our coaching program empowers investors to avoid costly mistakes and scale their business effectively.
5 Key Takeaways:
1. Cash Flow is King: Always ensure a property produces positive cash flow. Holding a property with negative cash flow can lead to long-term losses.
2. Metrics Matter: Evaluate every deal using the four key metrics: after-repair value (ARV), rehab costs, purchase price, and potential rental income.
3. Avoid Emotional Decisions: Use logic and numbers to guide your investment choices, not emotions or market speculation.
4. Flexibility is Key: If a property doesn’t fit the buy-and-hold model, consider alternative strategies like wholesaling or “wholetailing” to generate profits.
5. Sales Skills Drive Success: Having a solid sales process is critical for converting leads into profitable deals, especially in competitive markets.
Links & Resources:
• Learn more about our coaching program and set up a free consultation: creamlaunch.com
• Reach out to us for insights and support on scaling your real estate business.
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