Cash on Cash Return Only?

[Matt Stevi]

What numbers do you guys use to evaluate deals other than Cash on Cash Return? I'm very new to real estate investing and I've been learning as much as I can over the last month or so, and so I'm just curious to know what other numbers I can run to see if a deal is going to be good or not. 

My #1 goal is to one day grow a portfolio of single family homes + small multi-family homes that cash flow positively, and years from now produce enough monthly income to greatly supplement (and eventually replace) my income from my job (aka, retiring in my 30s).

Thanks!

Matt

[Nathan Gesner]

Yes, you can do deals with other people's money. You can also win the lottery, fall on top of a mountain, and sing one video on YouTube and go viral. You can also go broke using other people's money.

If you put zero dollars into a deal, that means you are borrowing 100%. That's very risky with a high rate of failure. It also means you are over-leveraged and have a high risk of everything crashing down on you with just the slightest turn of the market.

You know who pushes "no money down" tactics? People that want you to buy their books, seminars, and coaching. It builds wealth for them, not you.

If you want to make money in real estate, you need skin in the game. If you take shortcuts, you'll find a shortcut to bankruptcy.