Cash Flow: Watch Your Wealth Grow!

Watch Your Wealth Grow!
Cash Flow: Watch Your Wealth Grow!

Cash flow came up the other day in an interesting conversation with a friend over a Starbucks coffee. He knew that I like investing in real estate but he wanted to know how real estate investing grows wealth. Now, I knew that my friend has an analytical mind and I know that in his question, he would be analyzing every word that came from my mouth. So, I thought about his question for a few seconds and realized that I had to give him an answer that would satisfy has curious mind. I then picked up a Starbucks brown napkin and wrote four terms: cash flow, equity, depreciation, and appreciation.

Grow Your Wealth By: (1) Cash Flow

First, I told him that real estate investing provides for gross spendable income or as we say in the real estate investing, cash flow. I asked him to imagine buying a property for 60% of the market value, using the bank to finance the property and then renting the property out for twice the mortgage that you are paying on it. He said that “it sounds good!” I said, that’s cash flow making you wealthy!

Grow Your Wealth By: (2) Equity

Second, in addition to cash flow, now take the same property  and hold on to it for a number of years. Let your tenant pay your down your mortgage. This means that the debt on the property is decreasing and your equity is increasing.  The equity in the house is a valuable asset. It can be used as leverage to buy another property to start the process over again. I asked him, still sounding good? He replied, keep going. I said, that’s how you grow your wealth!

Grow Your Wealth By: (3) Depreciation

Thirdly, I said after considering the cash flow and equity take the same property and deduct the cost of depreciation for the wear and tear on the house by the tenant. Then you use that depreciation as a loss on your taxes. This could save you thousands on your taxes. I asked, “still with me” he nodding his head. I said, this how savings in taxes grows your wealth!

Grow Your Wealth By: (4) Appreciation

Lastly, I said consider cash flow, equity, depreciation, and now add in appreciation to the property. I told him that the savvy real estate investor makes money when he buys a real estate deal not when he sells. Remember I told him to imagine buying this property at 60% of the market value? This means that in a worst case scenario, the property should appraise for what you bought it for. So you would not lose any money. The upside of appreciation is that the property will more than likely rise in value and become more of a good investment over time. I said, are you still concerned about growing your wealth?

After about 10 minutes of my back of a napkin presentation, I asked him if he could find the same benefits by investing in stocks, bonds or precious metals. He said no. He thought that what I explained to him sounded good but, was still wondered if he could grow wealth by investing in real estate. I said yes, I am doing it now!


My friend was so impressed with my presentation that he bought my favorite Starbucks coffee. He had learned four ways to grow wealth by investing in real estate. He had learned all about (1) cash-flow; (2) equity; (3) depreciation; and (4) appreciation. He asked about how he could learn more. I hope that you do to! If you would like to learn what I am teaching my friends and clients, come to The Book On Investing to learn about my Savvy Investor Program.

My Business Dream Team

As a real estate investor I have created a business dream  team to help me achieve my goals. Now I teach real estate investors and other entrepreneurs how to do the same. My new program, “, “The Ultimate Guide to Building Your Business Dream Team™”,  is designed to help real estate investors and other entrepreneurs learn how to focus on the things that they do best and delegate the rest. This program will help entrepreneurs be less transactional and more transformational.

In my book, “The Book On Investing™” , I write about how I am able to buy and sell properties, sight unseen, and make handsome profits. I am able to leverage the skills and expertise of my powerful business dream team to accomplish much more that I could do on my own.
Below is the process that I used to buy and sell my first real estate investment property.

Dream Team Member #1 – Marketing Person. This real estate deal was a property that was located 300 miles from where I live. A motivated seller contacted me after receiving info from my marketing firm. I contracted out to a marketing firm. That  gave me the best return and response rate.
Dream Team Member #2– Real Estate Agent. I immediately put the house under contract. The contract was generated from my automated contract writing system. I then located a local Real Estate Agent. I added this Real Estate Agent to my business dream team to get comparable sales in that neighborhood. In addition, this Real Estate Agent continues to provide me with real estate investment leads.
Dream Team Member #3- Property Inspector. From the Real Estate Agent’s contacts, I was able to add a local property inspector and handyman. The inspector reviewed the house and provided me with repair estimates. This property inspector is now a trusted partner of my business dream team. I use him frequently to inspect and repair other houses.
Dream Team Member #4– Property Buyer- Through my property inspector I was introduced to another real estate investor who buys properties with cash. I was able to sell this property to this cash buyer.  The cash buyer is now an integral part of my business dream team.
Dream Team Member #5– Closing Attorney. Through my contacts with the property buyer, I was able to make contact with a local Real Estate Settlement Attorney. This Attorney handled all of legal issue associated with the purchasing and selling of this property. The attorney handled the title search, escrow management, and all of the legal paper work.
Because of the work I put into building a team, the purchase and sale of this property went forward without a hitch. I used this experience to develop a blueprint for constructing a dynamic business dream team that can be adapted to any business.
To learn more about how I can help you build your business dream team to help you achieve your goals, visit “The Ultimate Guide to Building Your Business Dream Team™”.  Sign up today and get your free report!

How I Learned to Build My Business Dream Team

Rescue Impossible, Nightmare Hell!

Some of my favorite television shows are Kitchen Nightmares, Hell’s Kitchen, Bar Rescue and Hotel Impossible. These shows are so popular because people like you and I enjoy all the drama associated with these businesses on the verge of failure and how the experts like Chef Gordon Ramsay come in and save the day.

 Although these shows are very entertaining, they also teach me some important lessons on business: You have to work on your business instead of in your business. Otherwise you have a job rather than a business.

Most of the business owners on these shows suffer from the typical bad business disease that other business owners have, they try to do everything themselves. On one recent episode of Kitchen Nightmares, the restaurant owner was the manager, the chef, the accountant, the cleaning person, and the host. No wonder, his business was failing; he was trying to do everything and was good at nothing.   

The business owner had not learned to delegate! I had the same problem when I started my business, but quickly learned from my mistakes. Now I have the time and money to enjoy the fruits of my business. For example, I can enjoy eating lunch at Chef Gordon Ramsay’s restaurant in Las Vegas! My business continues to operate when I am not there because of “The Business Dream Team™” I have put in place. 

Learning how to build a dynamic business dream team is the difference between having your business run on automatic pilot and one where you have to be there in order for it to run.  When we learned the secrets of how to build “The Business Dream Team™”, our business took off like a rocket.  We can now spend more time on marketing and building our business while enjoying the fruits of our business.

In an effort to help our clients achieve greater levels of success, we decided to create a program to show other business owners how to build a dynamic business dream team. The program is called, “The Ultimate Guide to Building Your Business Dream Team™.”

This program is designed to help you select, hire and manage your business dream team to help you grow your business. It includes a step by step guide, a checklist, and other modules to help you reach new levels of success.

So, don’t work in your business, get the help you need to create the life of your dreams to make your business a success. Visit us at to learn more.



Do You Want to Be Wealthy When You Grow Up?

What do you want to be when you grow up?” is a question that you become accustomed to hearing as a child from adults.  Many of us were annoyed by that question, but we admit that we have asked many children that question ourselves.

 Today, let’s focus on you! Now that you are grown up, “What do you want to be?”

Do you want to be wealthy? Or are you worried about not being broke? If your focus is on not being broke, you will never be wealthy!  By focusing on “not being broke” you attract “brokenness” into your life and all the negativity associated with it. 

 Research shows that you have over 60,000 thoughts a day and that 95% of them are the same thoughts that you had yesterday.  80% of those thoughts are negative—wealth robbing, happiness robbing thoughts.  You must release those negative “brokenness” thoughts and replace them with positive “wealth building” thoughts.   Then you can be what you want to be!

As you begin the New Year, think about the wealthy, abundant, and happy life that you want to live.

In The Savvy Investor Program™, we teach you how to create the life of your dreams. We can teach you wealth building tips that you can begin to use immediately! We help you get off the treadmill. Remember that with real estate investing as one part of your financial plan, you can create the life of your dreams by following a few time-proven wealth building strategies and techniques. Today, buy your copy of
The Book on Investing.

Share this post and link with your friends so that they can begin to understand how to create a wealthy and abundant life. Let us know about other topics that you would like for us to discuss.