All of our investments go through a vigorous multi-step process including ensuring that our properties meet all of our crtieria, including the following main ones:
- Cashflow positive even after contingencies (vacancy and repair allowance)
- Can deal with mortgage rate fluctuation and a degree of risk
- Attracts and maintains lower risk, lower maintenance tenants
At the end of the day, if a real estate investment deal doesn’t cashflow, it simply doesn’t fit our investment criteria and we move along until the next opportunity that does. This has enabled us to generate positive cashflow while our properties systematically increase in value (over the long term, obvious fluctuations occur) and our tenants pay down the mortgage. Add that all in and mix it with a number of other important investment strategies and you have a win/win/win situation for both us, our venture partners and our entire team, which makes legal, accounting and financing a much easier process to manage.
We’re already well on our way to creating financial freedom for both ourselves and our venture partners. Before we know it, we’ll have reached our goal and be setting new ones!
–
Brent Mondoux
Founding Partner, Amplified Investments
brent@amplifiedinvestments.com
That’s easy and simple but, what if the interest rates are too high for th mortgage which will always make your cash flow negative
Don’t limit yourself to investing within your immediate vicinity. Some cities don’t (and will rarely) have real estate investment opportunities that cashflow. Sadly, that’s the reality. When investing outside of your geographical areas, it requires a lot more up front homework and you’ll need to hire a property management company that you can verify the quality of their work. There are tons of resources online to help you get over that hurdle. Just make sure you do your homework first, systematically tackle the challenges one by one… if you want to do something you’ll find a way, if you don’t want to then you’ll find an excuse. Don’t let it be the latter.