I made up a new word: CASHFLOWNAIRE!
Cashflownaire: A person who has the positive cash flow of a million (or multi-million) dollar net worth.
As you probably know from previous posts, my financial strategy changed dramatically with the big 2008 market crash. My focus today is on monthly cash flow instead of wealth (net worth).
I don’t care about being a millionaire.
I do care about being a cashflownaire.
Having a million dollar net worth may, or may not, change your life. The reason why is the majority of your wealth will be locked up in your business, your home, or in other illiquid assets. It’s hard to eat your home equity unless you borrow it. It’s hard to eat the equity in your business unless you sell it. I sold my real estate company back in 2007 to unlock the equity trapped in the business. I sold the business for 7 figures and financed a significant portion of this sale providing a check for around $8,000 a month. Life was good!
Then the buyer defaulted and the checks disappeared.
My large net worth and monthly income vanished providing me with an opportunity to really think about what I wanted in life. Did I want to rebuild the business? Did I really want be a multi-millionaire? Did I want to work 7 days a week? Did I want to hire, train, and manage employees? Did I want the massive overhead and pressure of a large business?
Slowly but surely, I realized that I didn’t want to a large net worth. What I really wanted was the income from a large net worth-ie: cash flow. I wanted the $8,000 a month. This realization was life changing for me, because I no longer had to build a big business…read more
“With so many obstacles and regulations in the weed business, owning your real estate is the only thing we can control in this industry,” Sally Vander Veer, CFO of Denver-based pot shop Medicine Man, tells Inc. “It's essential to long-term success.” That’s because, if you don’t own your own grow-house, it's typical for landlords to up the rent significantly after marijuana-growers invest huge sums of money converting the space. And the local real estate business is booming for buildings perfect for growing weed (aka zoned as light industrial). Vander Veer and her brothers bought just such a building in 2014 for $2.5M, and they recently sold it for $6M. Among all the uncertainty in the pot business, weed entrepreneurs can only make one safe bet: buy real estate….read more
This powerful four-member “team” could mean the difference between success and failure in real estate. Sometimes a team can accomplish far more than a group of lone individuals. For example, cyclists in the Tour de France take turns riding at the front of their group, decreasing the wind for those behind them. Wolves hunt in packs to take down animals 20 times their size. And for those of us who were children of the '90s, we all remember Ducks Fly Together…read more
Think you can’t invest in real estate because you love to travel? Think again. Here’s how one traveler renovates, manages and rents her investment property, no matter where she is in the world.
Sometimes it’s worth investing in a middle man. Pant describes hiring a property manager after a phone consultation. She signs the contract electronically and keeps tabs on the property’s needs by email. The property management company does all the necessary upkeep, like cleaning gutters, and sends photos to Pant when tasks have been completed.
Even when she’s adventuring around the world, Pant knows her property is in good hands. read more
Decor is the mood setter for the home. Having the right setup in your house can help you and company feel more relaxed, alive, and welcomed. In a day and age where your home may be the only sanctuary you can find, it’s important to set it up right. Here are some diagrams with examples of things to consider for making your abode the best it can be.
Nationwide home prices are now within 10 percent of their pre-crash peaks and seven states have surpassed those peaks, some have been establishing new high marks for several months. CoreLogic said today that its Home Price Index (HPI) that tracks that home prices nationwide, including distressed sales, rose in March for the 37th consecutive month on a year-over-year basis.