and you be a capital ging investor or a
cashflow investor now you can hear from
my voice I'm still recovering because
this week I was actually teaching my
students my high tech closest students
as well as my high income copywriter
students are two different groups each
one of them almost a 6-hour class
because I didn't want to finish the
class without answering all the
questions so although I always say that
the class is around two to three hours
but most of the time I over deliver and
we go over time this is why you hear my
voice is not at the optimal but I will
answered your question so when it comes
to cash flow investing or capital gang
investing first of all in case you don't
know let me explain the difference when
you are a capital gang investor meaning
that you want to buy low and sell high
right you want to buy something at this
price point in your sell at this price
point I you wanna buy a piece of
property for let's say $250,000 and
hopefully within a number of years you
may sell for $350,000 that's a capital
gain investor a cashflow investor on the
other hand you're not looking just in to
appreciation but you're looking at a
cash flow we talked about the cash on
cash returns so I'm investing let's say
X amount of dollars I want to get a
return of maybe if they say 5% 6% 8% 10%
return on my cash investment what I put
in there put in ten dollars if I get a
dollar back you know every year like for
the first year let's say that's a 10%
return
that's a cash flow investor you got that
right so which one is better well I
believe there's no such thing now myself
I am more a cash flow investor because I
want to make money when I buy the
appreciation on the other hand it's not
like oh yeah I don't want any
appreciation no I do want the
appreciation in capital gain I'm just
not counting on it to me they're like
icing on the cake so if I'm buying a
piece of property I want to make sure
that the cash flow makes sense the
rental income that's coming in makes
sense I would not buy negative cash flow
property meaning that the rent that I
collect from the tenants don't even
cover my overhead and my mortgage right
all my other management fee from the
management company that's a negative
cash flow property people do that
because they hope that wow you know what
I'm losing a couple hundred bucks a
month is not a big deal I'm
a few thousand dollars a month I could
sustain it and they hope that they would
in whatever how many years they're gonna
sell it and a way higher price and exit
and be able to get a lot of capital gain
that's okay but I don't want to count on
that
I believe when I buy it right right
location the right timing give it some
time right give it some time this is why
we don't wait to buy real estate we buy
real estate and then wait it makes sense
day one right I'm making a decent we
turned a1 and after a number of years
and when it goes up if I do sell it or
if I don't sell it there the price has
gone up I just do a refinance meaning
that I borrow money from the bank I
still keep the asset but now I take the
cash out some capital out that I could
be invest again so I like cashflow
investing more but doesn't mean within
my portfolio I don't have some
investments that are capital gain so
this has a lot to do more with us and
locations versus which one is better
maybe 80% of your investment portfolio
is a more cash flow based maybe 20% our
capital gain base that's okay right well
you don't want is they all capital gain
based because then you're hoping you're
speculating no different than a casino
and it's very risky but if you have some
that are cash flow based and then if you
buy right they would appreciate anyway
so that's my recommendation now comment
below what kind of investor are you or
what kind of investor that you want to
be before you invest anything I always
say investigate before you invest
educate yourself as an investor first
before you spend a dollar putting into
your hard-earned dollars into anything
know a little bit about how investment
works learn about the rules the game of
investing what are some of the
regulations you need to know what are
some of the approach what is your
strategy you have to know those things
takers are almost gone if you want to
see me live go ahead click the link
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