Invest in assets that pay monthly or quarterly cash flow, recover your initial capital within one to two years, then redeploy it into new deals. Keep equity in each investment even after getting your money back, so your dollars compound across multiple deals instead of sitting locked up long-term.
I really only invest in investments today that have some sort of periodic regular occurring cash flow. Generally I like it to be monthly, worst case quarterly. But I want to get my principal back quickly because if I can do that and I can retain equity in a deal or I can, you know, just take whatever that is, you know, ideally I'm going to get some equity even if it's just a debt play. I like to try and negotiate some equity into it, but I want to get that back so I, so I can reinvest it in something else and I can have the same investment dollars compounding in different vehicles. So let's say, for example, that I invested in some sort of a real estate syndication and through the refinance, within some timeframe, I like to get my money back within one to two years. So let's say I get it back in a year, a year and a half, two years, somewhere in there. Well, I still have equity in the deal. I've got all my money out of the deal. I've still got equity in the deal. And I can take that same money and invest in another deal just like it and get more equity, get more cash FL until I get that money out. And I can do that over and over and over again so I can compound the return of the same investment dollars over a long period of time.
