Christian OsgoodCEO, Multifamily Strategy · CEO at Multifamily Strategy

Spending $30k to lose 5k per month???

4 Feb 2023 · 1 min

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0:37

An entrepreneur spent $30k and is losing $5k monthly on a resort project. The advice: build cash-flowing rental apartments first, then use that income to fund bigger bets that don't pay off immediately. Without steady cash flow, you're just bleeding money.

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build your business off of cash flow. Because in your case, you were negative day one, which is right now. Yeah, about $5,000 money currently, guys. Yeah, you spent $30,000 to lose $5,000 a month. Yeah, what's the ROI? But no, in all seriousness, she couldn't do that. We couldn't afford to do this resort, the Robin Hood, had we not built the apartment portfolio first. And you didn't do it with a whole bunch of seller-financed apartments, but you did it with cash flowing assets. So if you're watching this, which you are, make sure to build a cash flowing portfolio so then you can lever that into a resort or a bigger opportunity that may not work day one.