All Forum Posts by: Lee Ripma

In my personal journey equity is the secret to cash flow. I’ve got some articles about it in my blog. If I post here they will be taken down but you can click to my website in my signature to read them. 

Briefly, if you don’t have a significant sum of money in the bank (7 figures) then my advice is to focus on EQUITY not cash flow first. 

Awesome work!!!! 

The new loan is a cash out refinance - can be residential or Commerical 

Any of this likely works. There are significant time and/or money costs to doing any of this at scale. Some of these are more accessible than others. Like if you don’t know how to do SEO and PPC yourself then you’ll need a lot to get setup with it. 
I guess my feedback is, as someone who does these things, that unless you are putting significant resources into these then you may want to just leverage other people who are doing them - wholesalers and RE agents.

@Lauren Alpert - do you understand what cap rates really mean? They are a measure of risk. LA has very low cap rates due to the fact that LA will always be there and always be in demand. Compare this to a one prison town in Indiana where you can get a 12 cap. Low caps in LA mean that values are extremely high and if you force appreciation (or even better develop) you’ll be very rewarded for that in equity (value) in your building. Low cap rates are the perfect environment for creating a lot of equity. Creating a lot of equity means you have a lot of options. Don’t drink the cash flow cool aid, it’s a very small % of your overall return. 

Stessa

@Diogenes M. I started out of state. I think there are pros to learning about RE on a place you live in but you can learn about it without living in RE. Whatever it takes to get started! 

@Shrikar A. - I have startup around this. I’ll send you a PM. Demographic data matters! 

@Moaaz Malik @Joshua McMillion has some great advice for you, I learned several of the same lessons investing in Kansas City from CA. I’m a fan of going out of state, even to start. I talk about in on Bp 373 in depth. Think about if you want to find a way to buy a house in the Bay Area or if you want to be a real estate investor. If you want to be an investor then pick a market and get going buying properties. 

Awesome! Great point about getting in the ballpark of the returns but not worrying about $20 a month.