Flip Tip Summary

Cash is king! So, listen to this great tip from Engelo Rumora on why the cash flow metric is all you should care about for rentals. The rest is gravy. Check out this great FlipNerd.com Tip!

Flip Tip Transcript:

Mike: Hey, it’s Mike Hambright with FlipNerd.com and we have a quick VIP tip to share with you from Engelo Rumora, whose going to share a tip on why you should always consider the cash flow metric when evaluating real estate deals.

Engelo: The reason why I believe everyone should invest for cash flow is because no one has a crystal ball. We don’t know what the future brings, we can’t predict the future. Investing based on capital appreciation is investing based on hope that a property’s going to go up in value, and hoping is not a strategy.
You should look at the numbers in the deal as they stand today, and if those numbers suit your end goal and where you want to be, you should proceed with the investment. Look, I wouldn’t be here in Ohio right now, freezing, if it wasn’t for these awesome numbers and, yeah, mate, definitely cash flow is the most important thing, why investors should invest in real estate.
Another very important tip that I can give everyone is besides those awesome numbers, make sure that you focus on the trust and relationships before you actually look at those numbers and the stats of demographics of a particular area. So establish a strong foundation with key people on the ground in a particular area of interest. Make sure that they’re loyal, they’re honest, they’re not greedy, and that they respect you and who you are, and of course themselves. Then once you have found these people then you can start doing more research on the actual stats and demographics, and if that market can offer what it is that you’re looking for and if it will suit your end goal.

Mike: Thank you for joining us for another FlipNerd Flip Tip.

We’d like to thank our sponsors, RealtyMogul.com and National Real Estate Insurance Group.

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Mike: Please note the views and opinions expressed by the individuals in this program do not necessarily reflect those of FlipNerd.com or any of its partners, advertisers or affiliates. Please consult professionals before making any investment or tax decisions, as real estate investing can be risky.