4.8 • 2.1K Ratings
🗓️ 29 April 2025
⏱️ 10 minutes
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0:00.0 | really it just comes down to how quick can you break even like in this business like we're always |
0:05.9 | thinking about making that smaller and I started to think about it a lot and I was like it just like |
0:12.6 | clicked in my mind one day something like I had intuitively known but I could never understand why |
0:17.8 | I knew it so the problem with real estate, and I love real estate, |
0:22.4 | and we'll always do it. But the problem is the cash conversion cycle is really long. |
0:27.4 | Yeah. So if I spend a dollar to start marketing today, you know, if I buy a rental, |
0:32.6 | the cash conversion is I ain't making nothing until years down the road when I finally sell that rental. |
0:38.4 | Yeah. |
0:38.7 | Because clearly the cash flow is not life changing money, right? |
0:41.9 | People say, well, you buy a volume of rentals. |
0:43.8 | Buy 100. |
0:44.4 | Yeah, okay, whatever. |
0:45.2 | I freaking have 100 headaches to go make whatever, right? |
0:48.5 | Long term, though, cash conversion wise, it'll be great. |
0:51.5 | But when you really break it down, it's like, okay, it's 10% a year or whatever, right? |
0:56.6 | Yep. |
0:57.7 | So then I was like, that never made sense to me, even when I had no money or anything. I'm like, |
1:01.3 | that doesn't, that's not going to change my situation today. So I start flipping houses. |
1:05.9 | And so flipping houses was always a four to six month timeframe. And it's like, well, that's a lot better than five |
1:12.5 | years because if I put money into this deal and let's say I have to put $20,000 as a down payment |
1:18.8 | back then and it's going to make me $20,000 six months from now, that's a good return. That's |
1:24.1 | 100% in six months, which is 200% over the course of a year. I'm like, |
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