The Passive Investing Show

E13: There’s More to Return Metrics Than Cashflow with Jordan Moorhead


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A reliable return metric is an important aspect when making investment decisions. Not only does it help you visualize potential profit, but it also serves as a point of reference moving forward. While cash on cash return is a staple measuring system, there are other metrics you should know.

In the thirteenth episode of Passive Investing Show, J welcomes Jordan Moorhead, a real estate investor and the owner of The Moorhead Team. Join them as they explore different return metrics and how accreditation can unlock more investment options.

Here are some power takeaways from today’s conversation:

  • Passive businesses are ideal.
  • Do not undermine depreciation benefits.
  • Gamble wisely on angel investments.
  • Focus on other return metrics too.
  • Accreditation makes investing smoother.
  • Episode Highlights:

    [01:44] Shifting Gears to Passive Investments

    Jordan ventured into house hacking after starting a successful business. His interest in maximizing his capital growth led him to build a real estate sales team. His struggle to find good active investments convinced Jordan to use his wealth passively.

    He conducted due diligence with the following factors in mind:

    • Integrity of the partnership
    • Reasonability of the business plan
    • Familiarity with the area of investment
    • [07:53] Managing Returns and Expectations

      He expects a lesser monetary return in passive investment. There is more wealth in active businesses, but they also take more work.

      The value of depreciation benefits real estate professionals. It equates to a lower tax bill.

      [10:46] The Diversity of Return Metrics

      If you’re living off passive investments, cash on cash return is a vital metric. However, you need to look at various return metrics, too. You can look at equity growth and tax benefits from depreciation if you aim to grow your wealth.

      [14:18] Becoming an Angel Investor

      Jordan recently invested in an AI smart chatbot. He uses this product to drive leads on his wholesaling website. 

      Supporting a business with an intangible product is risky. He looks at private investments as a wise “gamble.”

      [18:07] Plan Ahead

      Jordan wants to continue building his business to generate more revenue for the company and its employees. He also plans to build their home-buying company alongside his passive investment.

      Accreditation in passive investments unlocks more options for investments. Encompassed with legal structure, accredited investments usually have smaller buy-ins.

      [22:38] Jordan’s Advice for Starting Strong

      Having a great system of managing money and wealth is foundational. Keeping expenses low and owning an investment account helped Jordan pile up his wealth efficiently.

      Notable Quotes from the Episode:

      [12:44] “I love real estate because there are so many different ways that you make money that is not just equity growth. There aren’t such wild swings in values compared to the stock market.”

      Resources Mentioned:

      Global Go Abundance Conference

      Ashcroft Capital

      Endurance Capital

      Connect with Jordan on Instagram or call 512-888-9122

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