Another Option for You
Posted by RichardFeb 23
In the current state of the US economy, it is undoubtedly difficult to manage a new portfolio of real estate and keep it profitable. Just look at the fact that housing prices and home values are at multi-year lows. If you are not cash flow positive, then it is next to impossible to grow a successful portfolio. What do you do? Continue to buy and hold? Start accepting literally anybody as a tenant in the hopes that you will become cash flow positive?
Or, do you simply stop building your business? Please do NOT do that.
FlipBoard readers are used to our on-going mantra of “Options. You gotta have options.”. But let me introduce you to a new term for success. Diversify.
There is nothing wrong with diversification of your assets in order to build stability and profitability in your business. These assets build wealth, provide leverage and can even generate cash flow. Remember, Robert Kiyosaki defines the term “asset” as something that adds to your net worth. If you acquire something that has a fee or cost to it, it is a LIABILITY. For example, a new piece of real estate appraised at $90,000 is a liability of $90,000 unless you can make it cash flow positive. [Meaning the monthly rent is more than the mortgage payment.]
The FlipBoard has stumbled across a holding company that may satisfy this need to diversify your portfolio while rents are low and vacancy rates are high.








