Finding the real estate with the best cash flow for investors is one of the most important aspects of real estate investing. You have to know the truth and take action when the real estate investment is right.
I talk to investors every day and they always want true answers about real estate investing but in the famous words of Jack Nicholson in a Few Good Men, “You can’t handle the truth!”
Many do not like to hear the truth so they tune it out.
In the real estate arena, many people have been following the activity of the real estate investors for so long that they fail to recognize or accept the fact that like all investments, real estate investments are indeed a moving target.
By the time most people get on board to a concept or a belief and are willing to finally invest, the real estate investment wave has moved, relocated, changed or been exhausted.
There are a few truths that investors must embrace in order to get the best cash flow closing out 2012 and into 2013.
Wall Street is a huge competitor in the real estate investment arena and a threat to real estate investors as a whole. In many markets, the window of opportunity is being narrowed and by the second half of 2013 the best cash flow opportunities will be squeezed to tight cash flow returns.
Real estate is more about location to the investor than any other real estate buying class. Markets exist throughout the country and the world that are positioned as better and best markets. Knowing how and where to find the best locations should be your number one objective in pursuit of real estate investments.
Within the best locations is the need to find the sweet spot… which direction of town is in the path of progress, which price point property offers the best cash flow with ability for good capital growth.
Sustainable cash flow is BY FAR much more important than cash flow returns. Realistic returns averaging 10% are realistic for long term real estate investments. Investments promising returns in the 20% category are not sustainable and rapidly give way to mechanical break downs and tenant turn over as the properties are older, tired out and in lower economic environments consisting of high densities of rental properties.
8 out of 10 people reading this will fail to take action in time, if at all. By the time they take action, the cream will have been skimmed off the top or worse yet, they will read articles in 5 or 10 years about all the wealth created by those who did take action.
There you have it. The truth. Back to Jack, “You can’t handle the truth!” or can you? I was feeling a little snarky and recently watched the movie a “FEW GOOD MEN” so I thought it would illustrate the things I see every day.
There are hundreds of real estate investors looking to capitalize on the real estate investment opportunities and many are getting educated (getting educated is great and advisable). The next important and most often missed step is taking action.
The best cash flow comes to those who are purposeful and take action and who can handle the truth.