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.
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, 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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