FREE copywriting and Marketing tips
Join 10,000+ Entrepreneurs and Ministers! Get our latest business and marketing articles straight to your inbox. Enter your name and email address to the right.
"Cash flow determines the value of the real estate" - Grant Cardone
What's the #1 thing you need to know about investing in real estate?
If you're thinking about entering into the real estate investing game, understand this:
"Flipping houses is not investing in real estate."
I don't care what financial guru you have been listening to -- they don't know what they are talking about.
House flippers flip houses so they can eventually move out of that particular game and enter into the multi-family real-estate investing game. People that invest in apartments aren't looking to get into the house flipping business.
As a matter of fact, think of it like this: The house flipping business is a business that you eventually grow out of. Someone who owns and runs a million dollar company doesn't go back several steps and opens up a lemon-aid stand on the corner of his or her neighborhood.
That lemon-aid stand is where a young entrepreneur may get his or her feet wet when it comes to running a business, but if they are already a successful millionaire, it doesn't make sense for them to go back to such an elementary level playing field.
The One Piece of Real Estate Data That Really Matters
With that said, there's only one piece of data that truly determines the value of a piece of real estate. But before we get into what that ONE piece of data is, here is what data it is NOT:
Understand this: Real estate is a place for you to protect your capital, and the only way to accomplish that protection and security is through cash flow.
Back in the day bankers and other types of financial advisers would tell you that your house was an asset.
The truth of the matter is: They lied to you.
You see, they considered it an asset because it is an income generating source for them, but it is not that way for you. Instead, it is a liability and a huge expense.
That is unless you are turning your house into a source (or stream) that generates income for you, as apposed to the banker. In other words, it becomes a property that increases your monthly cash flow -- another stream of income.
Take a minute to watch the following video by Grant Cardone, and then I will return with my final thoughts.