Episode Summary:
In this episode, Josh discusses the nine commandments of multifamily investing. He emphasizes the importance of investing for immediate cash flow and highlights the concept of the "promote" in syndication deals. Josh also shares insights on securing long-term debt, having adequate cash reserves, and the significance of location in real estate investments. He concludes by stressing the need for multiple exit strategies and always getting paid when buying a property.
Key Takeaways:
Invest for immediate cash flow, focusing on generating income in the present rather than relying solely on long-term appreciation.
Be all in for 70% of the future value of the property to ensure a favorable return on investment.
Secure long-term debt with minimal prepayment penalties to avoid potential financial risks.
Maintain adequate cash reserves to cover expenses and unforeseen circumstances.
Partner with experienced operators to increase the chances of success and navigate complex deals.
Choose locations in the Midwest, South, and Southeast for stable and landlord-friendly markets.
Have multiple exit strategies to adapt to changing market conditions and maximize returns.
Always negotiate an acquisition fee to compensate for the time and effort spent on finding and analyzing deals.
Notable Quotes:
"Invest for immediate cash flow. Make sure you know when your deal will cash flow."
"Be all in for 70% of the future value. That's the sweet spot."
"Secure long-term debt with minimal prepayment penalties. You want to keep that loan on your books."
"Have adequate cash reserves. You want to have six months' worth of expenses in reserve."
"Partner with experienced operators. They can help you win deals and navigate complex transactions."
"Choose locations wisely. The Midwest, South, and Southeast offer stable and landlord-friendly markets."
"Have multiple exit strategies. Don't rely on just one plan."
"Always negotiate an acquisition fee. You deserve to be compensated for finding a good deal."
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