Cash Flow is What Matters

I had a nice chat last week with one of my investors from the Midwest. He invests in Atlanta and has many associates who only invest in their local markets. I had to ask, WHY? If you are a Real Estate Investor, why would it matter where you invest. Shouldn't you be looking at cash flow, cap rate, equity, stuff like that? He told me that they felt they had to be able to put their hands on it and touch it. That concept confuses me. Why would you want to do that? We hire property managers to manage the properties. We have contractors to handle any maintenance issues. We have video to be able to see the property. If you own stock or a mutual fund, do you go to the front door of the company to see it? No, you look at the prospectus and look at quarterly reports. You're only interested in the bottom line, is the fund or stock performing. That is the same way to look at Real Estate. It is an investment, you invest because you expect it make you money. You do not invest so you can drive by and say "look, I own that." I see investors every day looking at deals in California or New Mexico spending $150-250k on deals that rent for $1200-1500 per month. They look at these deals because they feel comfortable because they know the street the home is on and live in the area. We have deals in Metro Atlanta that are literally $35-55k that rent for $900-1100 per month. Do the math. You can triple your cash flow by simply investing in the Metro Atlanta area. I urge you to treat Real Estate Investing just like any other type of investing you may do. Look at the deal. Look at the numbers. If you do that, take the emotions out of it, you'll make a ton of money and be successful. There's never been a better time to get in the game and expand or start your Real Estate portfolio. Find an experienced agent to find you deals and get started. We find money making deals everyday. They are definitely out there waiting for you to pull the trigger and start making money. Good luck and please feel free to contact me with any questions you may have., I'd love to help you.

Obama

So much has been said about Obama. I sense that many that got duped into voting for him are starting to realize the mistake they made. I believe he was elected for a reason. I believe the reason is to open our eyes before it is too late. Maybe God wanted this so we can step back and take a look at the direction the Country is headed. We need to get back to our roots. This Country was founded on Freedom. This Country was founded as a Christian Nation. It seems that with everything that is going on, we are headed in the opposite direction of both. The purpose of our Government is not to own companies like General Motors, not to run our Health care System and not to control over 50% of the GDP. Government, Federal Government was intended to be small. Instead of being small, Obama seems bent on making it as large as possible. He wants Power and Control of as much as he can get his hands on. Why do you think he always attaches a dire sense of urgency to everything. He wants legislation passed without it being read. He got away with the Stimulus being passed that way, I pray that will be the only item passed that way. Thank God some Democrats are actually beginning to see where he is trying to lead us. We are on the verge of bankrupting the United States and he wants the Senate to pass the Cap and Trade and wants to commit Trillions more to Health care reform. We do not have the money to do it. When Obama urges citizens to tighten their belts, he should include the Government as well. Our deficit this year is going to be more than quadruple what the previous record was. Quadruple. That's right, it is projected to be over $1.4 Trillion. Do you know what a Trillion dollars amounts to? We need to cut the budget, lose all the Pork. We need to cut taxes and encourage small and medium businesses. All these bailouts have amounted to nothing but wasted tax payer dollars. Let capitalism work. When a company fails, let it go away. If there is a need for what they provided or produced, another company will jump in and take its place and operate more efficiently and be profitable. The Government does not need to waste taxpayer money on poorly run companies. That is how capitalism works, supply and demand at its best. Survival of the fittest, not survival of who gets the most Stimulus money. The Obama administration is trying to make companies that earn a profit look like the bad guys. Are you kidding, where would we be without profitable companies? Profitable companies create jobs, they spend on Research and Development. Profitable companies are what has made this country great. Why would we want to make the Government any bigger? What has the Government ever been in control of that has been run efficiently? The IRS? The United States Postal Service? Medicare? Social Security? Everything they have their hands on is a financial mess. If anything we need to get rid of some of the things they have control of. I think UPS and FEDEX would be more than capable of delivering the mail. As far as the IRS, can you say Fair Tax. That is an entirely different issue. With all the issues we hear about Medicare and even the VA hospitals, why on Earth would we even consider a Government run Health care System? How stupid does he think we are? I like it the way it is. Don't get me wrong, it may need some tweaks here and there, but those tweaks need to be in the form of legislation, not control. Legislation directed at Insurance Companies may be what is needed, not the creation of a Federally controlled monster.
I do not see how small businesses can be expected to provide Health Insurance to all their employees. Most small Mom and Pop businesses have a hard enough time keeping their doors open at all. Minimum wage just went up to over $7 an hour. I used to own several small businesses and I'll tell you first hand, payroll is a killer. Add benefits on top of that and what's left? If Obama had his way, everyone would work for monster companies like Walmart, GM, Bank of America and Home Depot. They would all belong to Unions, all be on Federalized Health care and all be as dependant on the Government as possible. He doesn't want entrepreneurs to be successful. He wants us to be like Europe. Look at Europe. They have no population growth, they have no religion. Their centralized medicine has not worked. Heck, look at Canada for that matter. Canadians cross the border to get the medical care they need. They come here, why would we want to create a system like they have? It makes no sense. We need to change our focus. Our Economy will only thrive if fueled by low taxes and interest rates. We need to trim the deficit and cut spending. We need to pass smart legislation that helps the private sector, not that tries to destroy or control it. The Middle Class needs to stand up and demand this from Government. The Middle Class has the Power to elect Candidates that share their ideals and will represent their best interests, not the best interests of a large Government. I pray we take a hard look in the mirror and open our eyes before it is too late. It's not too late, we've already seen a glimpse of hope in the response to the Health care debate. Let your voices be heard. Your elected officials will listen if enough speak out.