Positive Cash Flow Real Estate

Given the changes in the real estate market, we're seeing a nationwide change in buying patterns by homeowners and real estate investors. It has become increasingly obvious to home buyers that this is their market and they're not going to just pay what someone is asking or maybe even more, like they would have for the last several years. Now, home buyers are tossing in lowball offers just to see how sellers will respond, like a real estate investor would. I have to admit....it's fun to watch.

I hear sellers and REALTORS® alike complaining about this. While I understand their frustration, I can't help but laugh. This is the nature of a market where things have been inflated and pushed for too long.

I think it's important for buyers to recognize the upper hand they have and to use it right now. This is a chance for you, as a real estate investor, to buy right and to hold on to properties until things change.

It's not just about buying low, it's about buying right. Our investors have been purchasing multi-units for $40k-$80k per property and know that in this market they will be holding them. They've purchased with equity and, if the need arises, they can move them quickly, but they know they're in it for the long haul. They understand that cash flow is king, and they want to wear the crown. But, to wear the crown, you've got to put in the time and effort to build the kingdom and that requires patience, determination, and planning.

I'm not talking quick flips. I'm not even talking about quick returns. I'm talking about letting your properties and your money make more money for you. That's called long term investing and this requires good planning. (Josh, at Biggerpockets, posted about this at the beginning of last year. I'd suggest taking some time to read through it yourself and really think about it.)

I'm not suggesting you make lowball offers on everything you see, but I am suggesting you make offers that will benefit your portfolio and needs, while taking care of the sellers by moving the properties they can't seem to get rid of now. If you're in investment real estate, I suggest you focus more on the long term possibilities. Building your own kingdom of real estate won't happen overnight and it won't come together with you doing all of the work. Get your team together and build right.