6 CE Flow It
The slide deck presents the sixth and final step of a six‑step commercial real‑estate investing system, titled “Cash Flow It.” It explains that the ultimate goal is to hold properties indefinitely to build legacy wealth. The presentation outlines three primary exit strategies—wholesale, traditional sale, and refinance & hold—detailing when each is appropriate. It introduces the “90 for 90” refinancing rule (90 % collections for 90 days) and the desired characteristics of long‑term, non‑recourse debt, while warning about loan terms, pre‑payment penalties, and assumability. The deck then covers asset and property management, contrasting third‑party management (4‑8 % fee) with in‑house management using AppFolio and remote staff, and lists the responsibilities of each. Strategies to continuously increase income (tenant services, short‑term rentals, liability insurance) and decrease expenses (property tax, insurance, utilities, management agreements) are provided, along with operational habits such as automating distributions, monthly reviews, and regular property walks. The latter portion focuses on wholesale considerations—rehab scope, building size, location, financing type—and the steps to build an investor/buyer database via online ads, MLS extraction, and landlord networks. It enumerates required wholesale documents, explains the “double‑close” transaction structure, and outlines traditional sale processes, broker commissions, financing packages, and 1031‑exchange possibilities. The deck concludes with actionable advice to build a buyer’s list from various sources.
Topics
Goal of Legacy Wealth Through Permanent Hold
Defines the overarching objective of holding commercial assets forever to generate intergenerational wealth.
Exit Strategy Spectrum: Wholesale, Traditional Sale, Refinance & Hold
Presents the three primary pathways for exiting a commercial project, with criteria for choosing each.
Refinancing Prerequisite – the “90 for 90” Rule
Explains the requirement of achieving 90 % rent collections for 90 consecutive days before qualifying for refinance.
Desired Long‑Term Debt Features & Pitfalls
Lists preferred loan attributes (non‑recourse, low fixed rate, long amortization) and cautions about market‑shiftable terms, pre‑payment penalties, and assumability.
Asset Management Options: Third‑Party vs In‑House
Compares outsourcing property management (4‑8 % fee) with building an internal team using AppFolio and remote staff, detailing responsibilities for each.
Income‑Boosting Tactics for Commercial Properties
Suggests ways to raise cash flow, including tenant liability insurance, ancillary services, and short‑term or corporate rentals.
Expense‑Reduction Playbook
Outlines systematic cost‑cutting measures such as property tax reassessment, insurance renegotiation, utility audits, and management agreement reviews.
Operational Discipline: Automation, Monitoring, and Property Walk‑Throughs
Recommends automating distributions, monthly financial reviews, quarterly reserve fund releases, and regular on‑site inspections.