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There’s been some massive swings of instability in the stock market. I’ve got enough drama in my life. I don’t need it with my money.
Little deals produce little cash. Little deals will get hurt when the market corrects. All the foreclosures were small deals: 2, 6, 8 , 10, and 12 units.
What’s the problem with these deals? They cannot cash flow. It’s back to termites, tenants, and toilets.
I tell you the truth—you should be in 32 units. You don’t need to sell a house. Mortgages are an obligation. You’re going to get killed with these deals. They don’t produce enough. Buy something that produces income. Little deals are traps.
You’re not in real estate if you’re trying to sell a single family home. You’re in sales. You might as well sell tennis rackets, shoes, or cars to make money.
You can’t grow if you don’t have cash flow. Cash flow is confidence. Sprint. At&T. Direct TV. They charge every month but pay dividends out to their investors every three months. They are smart.
32 units is your breakpoint.
You need to view investing like you do with travel. You don’t get a small plane and travel all over the world. You call up Delta and get a good seat on a major airline. You go for the big ride.
Big deals always win despite market corrections!