BiggerPockets Real Estate Podcast

853: How to Make a 120% Return by Buying “Negative” Cash Flow Real Estate

12.06.2023 - By BiggerPocketsPlay

Download our free app to listen on your phone

Download on the App StoreGet it on Google Play

“Negative” cash flow can help you reach financial freedom up to FIVE TIMES faster, so why are most investors ignoring low-to-no cash flow deals? For decades, cash flow has been king in the real estate investing realm. Investors were told NEVER to buy a rental property that didn’t bring in hundreds a month or at least break even. But now, this golden rule of real estate investing is broken, and there’s a FAR faster way to build wealth that sacrifices cash flow for something much more powerful.

And this isn’t just some hypothesis or “what if” scenario. We have three investors today showcasing three real estate deals, ALL with negative cash flow and ALL with huge equity upside, 100% (or greater) returns, or profits that far outweigh what most investors even dream of achieving on their real estate deals. And if you do just a few of these deals the right way, you could reach financial freedom in a matter of years, not decades, like today’s guests.

Join David Greene, James Dainard, and Mindy Jensen as they do their best to deprogram the masses from “cash-flow-only” investing and show you why negative cash flow isn’t always bad—in fact, it could be a sign of an unbelievable deal. 

In This Episode We Cover:

What is “negative” cash flow, and why TOP investors go for these deals

ROE (return on equity): the one metric the ultra-successful pay attention to

How James traded $800 a month for over $300,000 in equity (with ONE property)

The danger of floating rate debt and how it can easily KILL your deals

David’s $100 negative cash flow deal that INSTANTLY made him $90K

The negative cash flow rules that you MUST follow

And So Much More!

Links from the Show

Find an Agent

Find a Lender

BiggerPockets Youtube Channel

BiggerPockets Forums

BiggerPockets Pro Membership

BiggerPockets Bookstore

BiggerPockets Bootcamps

BiggerPockets Podcast

BiggerPockets Merch

Listen to All Your Favorite BiggerPockets Podcasts in One Place

Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts

Get More Deals Done with The BiggerPockets Investing Tools

Find a BiggerPockets Real Estate Meetup in Your Area

Be a Guest on the BiggerPockets Podcast

Ask David Your Question

David's BiggerPockets Profile

David's Instagram

Rob's BiggerPockets Profile

Rob's Instagram

Rob's TikTok

Rob's Twitter

Rob's YouTube

Grab David’s Newest Book, “Pillars of Wealth”

Apply to Be on the Cash Flow Cage Match

Connect with Mindy:

Mindy's BiggerPockets Profile

X/Twitter

Hear Mindy on the “BiggerPockets Money” Podcast

Connect with James:

James' BiggerPockets Profile

James' Instagram

Hear James on the “On the Market” Podcast

Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-853

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email [email protected].

Learn more about your ad choices. Visit megaphone.fm/adchoices

More episodes from BiggerPockets Real Estate Podcast