Cash flow is king. It’s a common saying in real estate circles, and Mike Ealy learned the meaning of this phrase the hard way. Since then, he’s made it a principle of his investing throughout the Cincinnati market. He finds deals in strong cash flow areas and uses various strategies to optimize returns. He shares key lessons learned, strategies to optimize returns, and details about the Cincinnati market.
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Key Insights
- Started with a house hack and invested in car washes before losing it all
- Moved in with his mom and dad when he was 30 years old, before he was able to get back on his feet
- Lesson Learned: Focus, create proper budgets with reserves – 3% of gross rent
- Key Insight: Watch your leverage and be disciplined
- Uses life insurance strategies to provide greater tax benefits – infinite banking
- Currently seeks undervalued deals with renovation opportunities
- Millennials are seeking opportunities in the city and are open to historically rougher neighborhoods
- Used entity transfer to help control tax increases – school boards are
- When using entity transfer – Do a title search and consult your attorney
- Value in Cincinnati as rents are some of the lowest in the country, yields are some of the highest and the market is seeing growth
- Provides 6-8% preferred and 30% of the deal to investors
- Advantages being vertically integrated on portfolios less than 100 units
Bull’s Eye Tips:
Most Recommended Book:
The Hard Thing About Hard Things by Ben Horowitz
Most Recommended Digital/Mobile Resource:
PropertyWare
Daily Habit
Prayer and Meditation and Working Out
Wish I Knew Starting Out
The value of cash flow
Wish I Knew Last Year
Mandarin
Real World Advice
Everything is about perception – life is difficult, “if you believe it’s difficult, it is difficult.”
Best Place to Grab a Bite:
Skyline (According to his son. I strongly disagree with his son, don’t @ me!)
Jeff Ruby’s Steakhosue
Redland Grill
Island Fryday’s
Resources:
Broke to 1,000 units by Mike Ealy
Tweet This:
“If you believe it’s difficult, it will be difficult.”
Connect with Mike:
Website: Nassauinvests.com
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