853: How to Make a 120% Return by Buying “Negative” Cash Flow Real Estate

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Investing, Business

4.8 • 16.6K Ratings

🗓️ 6 December 2023

⏱️ 40 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

“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! Links from the Show Find an Agent Find a Lender BiggerPockets Youtube Channel BiggerPockets Forums BiggerPockets Pro Membership BiggerPockets Bookstore BiggerPockets Bootcamps BiggerPockets Podcast BiggerPockets Merch Listen to All Your Favorite BiggerPockets Podcasts in One Place Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts Get More Deals Done with The BiggerPockets Investing Tools Find a BiggerPockets Real Estate Meetup in Your Area Be a Guest on the BiggerPockets Podcast Ask David Your Question David's BiggerPockets Profile David's Instagram Rob's BiggerPockets Profile Rob's Instagram Rob's TikTok Rob's Twitter Rob's YouTube Grab David’s Newest Book, “Pillars of Wealth” Apply to Be on the Cash Flow Cage Match Connect with Mindy: Mindy's BiggerPockets Profile X/Twitter Hear Mindy on the “BiggerPockets Money” Podcast Connect with James: James' BiggerPockets Profile James' Instagram Hear James on the “On the Market” Podcast Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-853 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	Welcome to the BiggerPockets Podcast Show, 853.
0:04.0	I was taking into the forums and found an abundance of posts, as in hundreds of posts dating
0:09.2	as far back as 2008 surrounding the topic of negative cash flow.
0:14.4	As in when is it okay to lose money on an investment property?
0:18.1	So today we're going to unpack negative cash flow.
0:20.6	I invited some great investors on the show today so that we can discuss some real examples
0:23.9	and share why investors may choose this investment strategy.
0:27.0	After this episode we hope you will understand who this is for and when to stay away,
0:31.0	as well as some of the rules one of our panelists used to vet
0:33.6	negative cash flow deals. I'm joined today by Mindy Jensen of the BP Money
0:37.5	Podcast hello Mindy. Hi Rob, thanks for having me I'm super excited to talk to you
0:41.5	today. Happy to have you.
0:42.7	We're also joined here by former Red Robin Waiter of the year
0:46.0	turned on the market podcast panelist James Dainard.
0:49.7	Hello, my friend.
0:51.0	How you're doing, bud?
0:52.0	I hope you're ready for this, because we're gonna get it, we think we're going to get into it in today's episode.
0:55.3	Well, if we don't perform, I'm going to have to go back to Red Robin and start singing birthday songs again.
1:00.1	So we'll try to avoid that.
1:01.6	And we're also joined here by the beard, formerly known as David Green.
1:05.7	Hello, Dave.
1:06.4	Good evening, everyone.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from BiggerPockets, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of BiggerPockets and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.