Know your market appreciation velocity and how fast you'll make up a overpayment in price in equity position. 7.

Still, you want to continue the velocity of your money.

I hope you guys can help me with analyzing this BRRRR deal i am looking at in Detroit. this will be my 3rd brrrr, but the interest rates on the other 2 were much lower so i want to make sure my strategy still works. i dont need the cash flow as much as i want to build generational wealth through amassing equity and properties by increasing my velocity of money through the BRRRR method. 

There are strategies that require little of your own money and increase your velocity. 

Summary of my thoughts:  - unlike the past few (or more) years, the Triangle (and the US) has returned to a seasonal market that is slower at this time of year - overall market is against OPEN - higher rates mean lower affordability; sales velocity has decreased considerably  - carrying costs and cost of capital for OPEN will be higher going forward - window dressing - the company may be motivated to get inventory off the books before year end (so put in lowball offers now and close by YE) - Their $830M Market Cap is problematic for raising new capital - who's left?

I Worked IN The Industry... any one who thinks that the sacrifice of 40% of the value to get the money TODAY so I can WAIT 9 YEARS using a Self Directed IRA... well there is this thing called "The Velocity Of Money" that I think you need to google and see what I am talking about. 

@Jessica Tomlinson I have worked with Velocity Plumbing out of Quincy.

Sure there is a the velocity of the money in which I may have control over, if I have made the correct decisions however what if I am wrong and pick the wrong city or the wrong side of the tracks and I just spent 3 months and tens of thousands on a dog that just won’t sell or rent? 

That is pretty hard to quantify but is a big difference in terms of timing when playing the arbitrage game with LOCs.So for these deal structures, it's about velocity of return of capital vs. liquidity: (1) ATM: 25% return of capital + return on capital per year but locked for 4 yrs, also get tax benefits, (2) Pref Equity: 10-12% return on capital per year but 100% return of capital in 18-36 months, also get tax benefits.

Those lower end deals they might not make that much money per deal after the brokerage split so need to do velocity fast.