Owning businesses versus real estate??
So I am curious those of you with percentages to real estate assets versus buying businesses.
The businesses tend to throw off really high cash flow but I only look to buy absentee owner type models where cash flow is high and layers of management is in place.
That versus buying a value add real estate play that might not have as much cash upfront but more equity and cash flow on the back end. I have seen some restaurants that profit after expense 250k a year but are selling for 350k as the owner is motivated to retire and leave the country. Management is already in place. I could put 50% down with finance and recoup my capital almost in one year.
If I instead took a value play retail strip center there would be more outlay upfront for TI and LC's but more equity and cash flow on the back end once stabilized. I might consider buying one of each.
I want equity growth and high cash flow so maybe a portfolio mix is good.
