Monday, September 15, 2008

Stallion habit number 50 - I make money, I make money, I make money

Cris Wilson is by far my favorite teacher for Nouveau Riche, which is a real estate college. I can hook you up if you want to attend it, by the way.

He has a very simple business philosophy. It is, "I make money, I make money, and I make money."

Some people will jump into a negative cash flow situation. Negative cash flow is quite simply, your payment is $1000 and you e.g. are renting this out for $900.
This violates one of Cris Wilson's three rules, and that is that "He makes money."
You should make money when you buy it, when you own it, and when you sell it.
Hence, I make money (now), I make money (while you hold the investment), and I make money (when you sell).

So if you don't make money, why even do the deal?

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