BiggerPockets Real Estate Podcast

837: Seeing Greene (w/Meet Kevin!): Cash Flow Won’t Ever Make You Rich

Oct 29, 2023

Meet Kevin, YouTube's famous financial influencer and real estate investor, joins David to discuss real estate investing. They talk about why cash flow isn't as important as you think, the risks of dating the mortgage rate, the investing scam on social media, and why investing with no money down is a fool's game. They also explore the significance of equity and building multiple income streams. Overall, they provide valuable tips for real estate investing and emphasize the importance of gaining experience before partnering with inexperienced individuals.

51:38

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Meet Kevin!

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Quick takeaways

Flipping properties can be risky and expensive, so it's important to consider the additional costs and potential market conditions before deciding to sell a property.

Before pursuing real estate investments, it's crucial to qualify yourself financially, demonstrate stable income and job history, and consider borrowing options with low down payments.

When evaluating real estate investments, carefully assess market conditions, potential cash flow, and personal investment strategies to make informed decisions between flipping and the Burr model.

Deep dives

Flipping versus Burr Model

Flipping can be risky and expensive, especially in a market that's not appreciating. It's important to consider the additional costs like closing fees, repairs, and realtor fees when deciding to sell a property. Refinancing allows you to access the equity without these inefficiencies. Factors to consider when deciding between flipping and the Burr model include the location of the property, potential cash flow, and personal investment strategy. If the location is undesirable or the property won't cash flow, it may be best to sell. However, if the property meets your investment criteria and has the potential for future equity appreciation, keeping it as a rental through the Burr model is often more beneficial.

Introduction

2min

Sponsorship and Land Flipping Opportunities

2min

Target Return on Investment and Focus on Equity

2min

The Importance of Cash Flow vs Equity in Real Estate Investing

14min

Becoming a Successful Capitalist and Building Multiple Income Streams

6min

Analyzing Real Estate Investment Strategies

23min

Tips for Real Estate Investing and House Hacking

4min

Kevin Paffrath, AKA “Meet Kevin,” one of YouTube’s most famous financial influencers and real estate investors, joins us for this week’s Seeing Greene to answer YOUR real estate investing questions. But this time, you’ll hear a bit more about who should be investing, who shouldn’t, and why partnering up on a property is a huge “no-no” in Kevin’s book. Plus, if you’re starved for cash flow in this impossible investing environment, Kevin has some good news for you.

But that’s not all we get into. David and Kevin talk about why cash flow isn’t as important as you think, why dating the mortgage rate could be risky, the social media investing scam you could be falling into, and why investing with no money down is a fool’s game. One investor even submits a potential deal that makes Kevin want to vomit (his words), so if this sounds like something you’re about to buy, run away!

Want to ask David a question? If so, submit your question here so David can answer it on the next episode of Seeing Greene. Hop on the BiggerPockets forums and ask other investors their take, or follow David on Instagram to see when he’s going live so you can jump on a live Q&A and get your question answered on the spot!

In This Episode We Cover:

Why you should stop caring so much about cash flow and focus on THIS instead

What to do with “trapped capital” in your properties and how to make more money to invest

BRRRRing vs. flipping in 2023 (and which one Kevin HATES)

The investing “advantage” you might not even know you have

Partnership problems and the one real estate investment Kevin won’t touch

Using private money to fund your down payment (and Kevin’s STRONG opinion on this)

And So Much More!

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