A short YouTube video by Steve D Valentine that outlines three real-estate investment return tactics to consider when buying: (1) creating active income (e.g., flips, short-term rentals), (2) earning passive returns (e.g., buy-and-sell/carry with profit), and (3) acquiring equity stakes even if monthly cashflow is break-even or negative, accepting short-term loss for long-term equity gains.
Chapters
When we buy, there should be three tactics or returns on investment we should be looking at because all of these play a factor and they're all going to factor in based on what you're doing in life and based on your income and your retirement and where you're going. And one should be, am I buying something or investing in something that's going to create active income? So this would be a flip short term rental, something of that nature. The second would be am I buying the investment for a passive return? So if we look at you bought a $10,000 lot, you sold it on sell or carry, and now you have a return on money that's a good passive return on investment. And then you have the third one, which is we're investing because we're creating a great equity stake, but maybe the investment is break even or negative per month. But because we bought a significant amount of equity, I'm okay. Or you might be okay with a little bit of negative because of the equity that was purchased in the property. So I think those three things need to be kept in mind every time we're investing in something is what is the advantage of it?