In this podcast episode, Steve and Kevin share personal stories about their real estate investment failures, highlighting the importance of sticking to a well-thought-out plan.

Steve reflects on a decision from 2005, where he sold two fourplexes for a quick cash infusion, deviating from his long-term retirement plan. While he made a modest profit, he later realized that had he kept all three properties, they would now be worth around $1 million each, generating significant cash flow.

Kevin shares a similar story of failure. In 2009, after the mortgage crisis, he impulsively bought 20 homes for $150,000 without proper due diligence or a clear strategy, hoping to make massive profits. The investment backfired, leading to significant financial loss and eventual offloading of the properties at a loss.

Both stories emphasize the pitfalls of deviating from a solid investment plan, succumbing to "shiny object syndrome," and attempting to "swing for the fences" without proper research or preparation. Steve and Kevin both learned the importance of methodical planning and smaller, consistent wins over aiming for high-risk, high-reward deals.

0:00 Lower Interest Rates

3:31 Our Worst Investments

5:34 Steve's Tale

11:43 Kevin's Tale

22:49 Stick to Your Plan

In this podcast episode, Steve and Kevin discuss the often misunderstood concept of cash flow in real estate investing. While cash flow is widely seen as the ultimate goal for many investors, the hosts argue that its importance is overstated—especially in the early stages of investing. They emphasize that focusing solely on cash flow can distract from long-term wealth-building strategies. Steve shares examples of how appreciation, tenant contributions, and tax advantages can create significant financial gains over time, even without immediate cash flow or favorable interest rates.

The episode also touches on the importance of understanding when and how cash flow becomes relevant, framing it as a long-term outcome rather than an immediate necessity. They explain how interest rates, while often viewed as a barrier, can actually unlock opportunities for growth, such as tax-free income through cash-out refinancing. Kevin uses examples of real estate appreciation over time to show how properties can double in value, even in the absence of significant cash flow or optimal interest rates.

The episode aims to shift the mindset of real estate investors, encouraging them to look beyond short-term cash flow and focus on the larger financial picture, including property appreciation, tenant-paid equity, and tax-free income.

0:00 Life Lately

5:08 Cash Flow

11:46 Why it is irrelevant

20:50 Focusing In

In this podcast episode, Steve and Kevin discuss the significance of time in real estate investing. Steve shares a personal experience where they purchased a building despite rising interest rates, focusing on the long-term benefits over short-term market fluctuations. They emphasize that time is a powerful wealth creator when paired with real estate, highlighting how patient investors who stick to their plans often achieve substantial financial success. Kevin supports this idea with personal anecdotes, including how his own home’s value significantly increased over time and his son’s property investment that yielded strong returns after eight years. The discussion reinforces the idea that real estate investments, combined with time and a clear plan, can lead to significant financial growth despite economic challenges.

0:00 Intro

3:29 Purchasing Despite Rising Interest Rates

8:40 Time

15:46 After 8 Years

23:05 Plan