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

EPISODE · Dec 6, 2023 · 36 MIN

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

from BiggerPockets Real Estate Podcast · host BiggerPockets

“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 [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

“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 [email protected]. Learn more about your ad choices. Visit megaphone.fm/adchoices

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

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This episode is 36 minutes long.

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This episode was published on December 6, 2023.

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“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...

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