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After RV Ratio, how to determine a property makes sense.

After RV Ratio, how to determine a property makes sense.

We recently defined RV Ratio and how to use it to make sure your prospective rental property investment is sustainable from a cash flow perspective. Of course, RV isn’t the ONLY factor to consider. Here are a few others. Another big consideration to insure the...

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Anatomy of a flipper

Anatomy of a flipper

We’d chisel it on Mount Rushmore if there was enough space, “Real wealth is created by buying and holding income properties.” What’s that sound? Probably property flippers jingling a few extra dimes in their pockets. Sorry to be the bearer of bad news but, as a...

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Friends don’t let friends invest on adrenaline

Friends don’t let friends invest on adrenaline

When the Federal government bailed out Fannie Mae and Freddie Mac, the DOW soared 300 points and then plunged 300 points the next day. Lehman Brothers, a 158 year old company, filed for bankruptcy and the markets dropped 5% in one day. The inauguration of hope has...

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Put my commodities in a package, please.

Put my commodities in a package, please.

If you are a rental property investor, you’re actually a commodities investor! Think about it. Isn’t a structure built on land simply a collection of various commodities arranged in a particular order by professionals to resemble a house, apartment building, or strip...

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If it doesn’t produce income, it’s not an investment.

If it doesn’t produce income, it’s not an investment.

Every once in a while, the financial services industry on Wall Street stirs from its pile of sludge and trots out “proof” that investing in stocks is better than real estate. What is real estate anyway? That term is way too generalized. It would be like someone asking...

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Negative cash flow is your friend.

Negative cash flow is your friend.

Negative cash flow IS your friend. Nobody expects you to take such a contrary statement on faith so let’s look at an example from a Empowered Investor Network (PPIN) seminar to illustrate the point more clearly. Get ready to wrap your brain particles around the idea...

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An ADD guide to leverage.

An ADD guide to leverage.

If you’ve been a part of the podcast audience for any length of time, you’ve heard us say a few (hundred) times that you must maximize leverage properly to create wealth in real estate. Right now, it’s Friday afternoon and everyone’s multi-tasking like crazy to get...

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The pimple on Bernie Madoff’s backside

The pimple on Bernie Madoff’s backside

Gold would seem to be the hardest fraud of all to pull, either you got it or you don’t, but one enterprising con man managed to pull the wool over investors eyes for millions. Gold investors lost a total of $12.8 million between May 2001 and the summer of 2002 and now...

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If you like California, buy Austin

If you like California, buy Austin

The no longer quite-so-small town of Austin, Texas has about a million people these days. That’s a staggering number for those used to thinking of it as a cool little place that’s just a little bit different from the rest of Texas. For starters, the geography of...

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