Sep, 2023

Kinds of Real Estate Deals Explained by a Successful Investor

Wouldn’t it be great if someone explained the kinds of real estate deals in easy to understand language? In this video, successful multi-family property investor Rob Rowsell does just that. Are you a cash flow investor? Perhaps are you looking for back end equity instead? Either way, you will learn the nuts and bolts of these investment deals in this video.

What Kinds of Real Estate Deals Are There? How Do They Work?

Rob starts the discussion off on the kinds of real estate deals. He explains that a cash flow investor puts his or her money into an investment and receives a regular return on it quickly. A back end deal, however, works differently. An extreme example of a back end equity play involves injecting capital into a new construction project. You may have to wait a long time in order to get a return on your investment. Some factors in that deal include waiting on the land purchase to go through, hiring contractors, and building inspections before getting paid. Depending on the specifics of your deal, your payout could come at different times during the life of the building. Many times, a balloon payment is made to catch investors up when the building is sold.

Other factors to consider is turnover of tenants and renovations to an existing property. If you are in a position to wait these out, you could conceivably make a greater return than you could over the life of a cash flow deal.

Join Our Community

Now you know about the kinds of real estate deals. Why not consider joining our online discussion group, the Addicted To Life Community? Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!

Jun, 2023

Cash On Cash Return Explained

In this clip from our Addicted To Life Community Gathering, Rob Rowsell lays out the Cash On Cash Return Real Estate Formula. If you are an aspiring cash flow investor who is looking to replace your business income with recurring passive earnings, then this video is a must watch!

Rob Explains His Cash On Cash Return Real Estate Formula

Rob starts the clip out with a review of two real estate deals he is raising money for. Both of them would qualify as momentum plays. Over time, each investment will yield an average of 7% cash on cash return. Through renovations and rent increases, these properties’ values will increase. When he sells these properties, Rob uses a formula to calculate total returns. The back end equity earned, plus the cashflow from the five to seven year ownership will equal the total.

Rob then explained the principle of the 2X multiple, which is his goal typically with real estate holdings. In order to reach his stated goal of doubling his money, Rob may need to hold the investments longer than he had originally planned. For example, let’s say you had invested $100,000 in a property, kept it for six years, and earned back $140,000. Then you would divide $140,000 by six in order to arrive at around $23,000 profit per year. You will have roughly gotten a 23% return on your initial $100,000 investment after six years. That cash on cash return may sound too good to be true. However, in reality, it’s not!

Join Our Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the Addicted To Life Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in the real estate business. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!

Jun, 2023

Cashflow and Back End Equity Play

Rob explains the difference between cashflow investing and equity property investment plays. If you are willing to invest in new construction, for example, be prepared to wait for three years to see some of your investment returns. Cashflow investors may not be patient enough for that kind of ROI, but the regular mailbox money down the line could be worth it.

Backend Equity Property Investment

Rob starts the discussion by bringing up the example of new construction in the real estate realm. Investing in new construction is not a cashflow play, but rather an equity property investment play. The moment you start put your money in, interest starts to accrue, but you will not see those returns until the property is completed and people start signing leases.

Whether you want to hang onto the property, or sell it once its complete, it will not generate an immediate cashflow return. Rather, you could be waiting a few years for ROI.

Backend equity property investment almost always means greater returns. However, it requires more patience and faith on the investor’s part. If developers project your high rise apartment complex build will take three years, you are putting faith in them that it will actually take three years, instead of five.

Do your research and get to know the founders you could be partnering with. How many deals have they completed? Can they prove they can take a rental property investment full circle? How much money are they putting in themselves? Make sure you have all the answers to these questions, so you can avoid bad actors.

Join Our Community

Do you own multi-family properties? If not, do you aspire to one day? Then you should consider joining our online discussion group, the Addicted To Life Community! Each month, Rob Rowsell will teach you what you must do in order to build wealth in real estate. It’s not as easy as it looks! Property taxes, liens, and legal fees can all be hard to navigate, so having a successful guide in your corner like Rob is a must! Enroll today!