ThE ABc’S OF BUYING cASh FlOW REAl ESTATE lIkE BIllION-dOllAR PRIvATE EqUITY FUNdSthis the Macro Research. Then, you can follow up on the subsequent
steps at: http://www.SafeCashFlow.com.
- Macro Research - Identify a safe, high-growth market
- Micro Research - Locate pockets within that market for safe,
long-term cash flow - Your local help - Select an investment-minded real estate agent
to be your on-the-ground assistant - Leverage - Set-up financing (if available)
- Buy - Secure a property
- Prepare the home – Renovations
- Make money – Property management
steP 1: MACRo MARket - IDentIFY A sAFe, hIgh-
gRoWth MARket oFFeRIng heAlthY CAsh FloWSAFETY and GROWTH POTENTIAL are found in vibrant, strong
economies. No need to over-think this. You don’t need to be an econo-
mist to know where real estate prices and rents are likely to rise, or at a
minimum, hold strong. All we need to know are some very basic eco-
nomic fundamentals:
- GDP per capita
- Population growth trends
- Affordability
Let’s break it down very simply.
GDP per capita – Gross Domestic Product (GDP) is simply an all-
encompassing measure of economic output in a given area. GDP equals
jobs. Jobs equal the capacity for tenants to pay rent and families to buy
houses. All economic data should be researched by MSA as this infor-
mation is most relevant to real estate investing. We need local data, not
information based on State or region. You can see GDP rankings by
MSA at the link provided here: http://www.SafeCashFlow.com
Population growth – Early in my career, one of my mentors shared
his simple success formula for virtually guaranteed appreciation: “Buy
houses where people want to go.” Simple, right?