Wayne Courreges III breaks down when to chase cash flow versus equity in real estate. Cash-flow investors want passive income over 5 to 8 years with steady distributions and lower risk. Equity investors accept higher risk for bigger returns through capital appreciation.
Chapters
If you're a cash flow investor, that's more thinking, like you're looking to replace your income or supplement your current income to get you out of a situation, good or bad. Maybe you know, you have a goal over the next five to eight years, you want to get out of your W2 or retire, etc. And you're wanting to replace income with passive income. So at that, you know, it's simple. You look for opportunities that provide cash flow and you know, depending on the risk of that investment and you know, it may be a lower return depending on if it's pretty, if it's a conservative type deal or, or higher risk, higher return. So that's one piece that you have to determine if you're a cash flow. If you're an equity like, hey, you, you love your job and you love your situation, life is good, but you just need to place capital and you're wanting that to double, triple over the years, then you may be heavily more focused on equity, the development type stuff that's higher risk, but there's a hell of a lot higher returns.