Cash Flow Guys Podcast

“Deal Shopping” tends to lend itself to the rose-colored glasses effect, everything is great, no worries here, this place is just under-rented, all ya gotta do is buy it and POOF double the rents and get rich right?  WRONG Before we go any further, let’s discuss the two types of vacancies. Physical vacancy applies to actually empty units (nobody living in them) Economic vacancy identifies the difference between the potential (proforma) rent and the actual rent. As a passive investor investing in someone else’s deal, it’s a good idea to perform your own independent market research.  Your findings should align with the finding of your deal sponsor.   If you are buying a property yourself as an active investor, the same is true.  You can’t count on the Wholesaler, Broker, or Seller to be accurate with the information they provide. It’s not that they are lying necessarily, instead, it’s more likely that they simply were not willing to do their homework if they are the Broker, Wholesaler, or Deal Sponsor.  If the