Done properly, an investment made today should have “priced in” the factors the were previously unexpected and resulted in trouble. 

Some are glorified fee takers and any cash flow or equity return on the property is icing on the cake.I like it more when the fee is just a small component of the deal and the syndicator wins more when their passive investors do on the back end.

However, we faced a few unexpected challenges:A hailstorm damaged the roof while the property was under contract.The main water line to the property failed.

Build up enough SFR’s in your portfolio and you’re destined to be replacing one or more of these components each year.

@Ronald MejiaYou can buy in cash and or use a large down payment, 60% for example and you can lock in a rate that cashflows so you can have some liquid cash for unexpected expenses or use that cash for the down payment on the next BRRRR.

Components of Rent in a NNN Lease. 

Plan for the Long TermTax Planning: Understand tax implications and consider strategies such as 1031 exchanges for deferring capital gains taxes.Estate Planning: Develop a plan for passing on your real estate investments to heirs.Additional Tips:Stay Disciplined: Stick to your investment plan and avoid making emotional decisions.Continuous Learning: Real estate markets evolve, so stay updated with industry trends and regulations.Risk Management: Be aware of risks such as vacancies, unexpected expenses, and interest rate fluctuations.By following these steps and remaining committed to your goals, you can progressively build wealth and achieve financial freedom through real estate investing.

That’s the lowest index level seen since December 2023.Looking closer at the components of the index, however, revealed that expectations for the next 6 months actually improved slightly.

While this is true, I think most people forget there are two components to refinance.

One component for investors to consider is an exit strategy.