Understanding Real Estate Cashflow and Why It's Important

To cash flow or to appreciate? This is the million-dollar question of rental property investing. And one that has been examined, debated, and studied six ways to Sunday. These two different schools of thought on how to make money on rental properties have often been argued as a matter of preference. At ADPI, however, we’ve got our own reasons why one is better than the other, and we’re here to tell you about them.

First, though, here’s a quick introduction to each of these money-making options:

Cash Flow  

If you’re getting into the rental property market, you’re in it to make money, right?! Well, let’s hope so.

One of the most popular ways to do that is by collecting monthly rent from tenants that exceeds the property’s monthly expenses. This leftover profit is called cash flow. Though cash flow on a single property averages a couple hundred per month,...

WHY YOU SHOULD FIRE YOURSELF AND HIRE A PROPERTY MANAGER...AND HOW TO DO IT

Kevin Brenner, Capt, USAF

Just Fire Yourself All Ready

Well, you’ve reached the top.  You spent months, maybe even years, educating yourself about all the wealth-building power of REI.  You’ve spent late nights scouring online forums and reading every REI book you could get your hands on.  You’ve asked all the right questions to all the right people at all the right meetups. And finally, you were rewarded with the ever elusive opportunity that all true investors chase - the Deal.  Because you are educated in the ways of the Deal, you instantly recognized its value and wrapped it up under contract.  After spending weeks working with lenders, lawyers, title companies, and real estate agents, you finally closed.  Now what? Well, that’s easy - it’s about time you got yourself fired.

I Don’t Need A Property Manager, I’m Handy...

Before...

What is the VA Tidewater Initiative? 

This is a true life, it happened to me, precautionary tale. I want to share my Tidewater story with future home sellers as well as buyers. Tidewater is happening more often in the current market than ever before. I want more people to become aware of the possibility of a Tidewater situation, in case it happens to them. My husband and I have purchased and sold a handful of homes during his military career. We’ve used both conventional and VA loans to mortgage our houses. In this example, we were the seller and the buyer was shopping with a VA loan.

Until a few weeks ago, I had never heard of the term, “Tidewater” as it relates to real estate. I was pretty familiar with both VA and conventional appraisal processes, but I never thought too hard about it. Every appraisal for each house we had ever purchased came in at the contract price or slightly above it. Convenient, huh?

RENT IT OR SELL IT?

As we were preparing to PCS...

Rich Dad Poor Dad To The Rescue!

I pulled into my favorite dirt parking spot at Daffin Park.  Ray and some of the others were already ahead of me setting up the net, the music, and cracking some fresh beers.  Geez, Ray’s truck is obnoxious, I think to myself. It’s one of those Dually Chevy F5000s - I don’t know what it’s called.  Doesn’t matter.

It’s a Friday in mid-March, so the weather in Savannah is just perfect for some beach volleyball. After a few games, we head to the park benches to relax and catch our breath.  Ray mentions to me that he closed on another home and I asked him jokingly, “How many houses do you need, man?” At that point, he had purchased 4 single family homes - one of which he was living in with 4 roommates (aka House Hacking). The others had tenants in them already, but I didn’t quite understand why.  

I also couldn’t understand how Ray could be frolicking around on a beach...

Real Estate Wholesaling

Real estate wholesaling is simply when one party (a wholesaler / buyer) puts a property under contract with the seller, then markets the home to other potential buyers for a higher price. The Wholesaler will assign the contract to the new buyer. The wholesaler will make their profit from what is referred to as an assignment fee, which is the difference between the contracted price with the seller and the amount paid by the buyer.

While there are many ways to finance your first investment deal, wholesaling does not require significant capital to get started and therefor many real estate investors consider wholesaling to be the best short term money making strategy.

In order to be a successful wholesaler you will need to be able to identify properties that have profitability to end buyers. End buyers are typically real estate flippers or other types of investors who prefer not to spend time searching for discounted properties.  

By acting as the connector...

When ADPI asked me to write a Blog post about starting a meetup I was quick to accept. I thought “what an opportunity to encourage others to take control of their Real Estate Investing (REI) futures no matter where they are at in their journey to financial freedom”. I, like many of you, am brand new to REI, but I am extremely motivated to grow and learn. My hunger for knowledge and desire to break free from my self-doubts and comfort zone drove me to begin my own meetup.

I didn’t start out with the intentions to start a meetup. In fact, I was extremely nervous. My story begins back in December 2018 when I finally decided to get serious about my financial future and step out of my protective bubble. I bought tickets to attended Rod Khleif’s Multifamily Bootcamp event in January based on the recommendation of my buddy Eric Upchurch.

The event was awesome and even though I spent much of it observing, I recognized the importance of networking...