Cash or Cash Flow and Equity

In real estate investing there are only two fundamental acquisition strategies: buy for cash and buy for cash flow and equity buildup. There are many specializations and variations within each of these basic strategies, and they often are referred to by various names, such as optioning, assuming, rehabbing, long-term investing, quick-turn investing, wholesaling, wrapping, lease optioning, and fixing and flipping. However, all those names just complicate the picture. No matter what you call them, these strategies boil down to one simple fact—investors invest for Cash or invest for Cash Flow and Equity. One is a cash-building strategy, and the other is a wealth-building one. All you need to do is decide which of these two strategies you want or need to use and then follow the model for it.

Experienced Millionaire Real Estate Investors often make their investment decision making seem easy. They can look at a property, do some quick calculations on the back of an envelope or in their heads, and tell you whether it could be a good deal or not, along with "Buying and selling makes you rich. how they'd do it. This is Buying and holding makes you somewhat frustrating to wealthy. We know lots of people who make over a million dollars a year buying and selling. But while having a lot of income means you're rich, it doesn't mean you're wealthy. You arrive at their answers. At won't be really wealthy until you buy times it can look like they and hold and pay them off and let don't have a process at all. them appreciate."

What we came to under- Jack Miller

Millionaire Real Estate Investor stand was that millionaires Reno NV

observe because you can't really follow their thought process and the way they do have a method of analysis they follow without fail. It's based on their experience, and they apply it intuitively. It's like a rule of thumb, except with lots of thumbs all working together. You could call it a rule of hand that sometimes seems like sleight of hand, a trick casual observers can't follow. But it's there, and when you put it on paper you begin to see the detailed, step-by-step process they follow. It tells them what to do and allows them to make good decisions quickly and efficiently. The fundamental process they follow is the Acquisition Model of the Millionaire Real Estate Investor (see the chart below).

The Acquisition Model of the Millionaire Real Estate Investor


Buy, Improve & Sell 4

Control & Assign 2

Find & Refer 1

Your Cash-Building Platform

Cash Flow & Equity

Buy, Improve & Hold 3

Buy & Hold

Lease Option

Your Wealth-Building Platform

Figure 52

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