
Ready to learn about the third type of investor?
The third type of investor invests for both capital gains and cash flow. In the past, stock investors focused on earning both capital gains (profits from selling stocks at a higher price) and cash flow (dividends from the stocks).
However, in today’s investing environment, driven by advanced computer programs and algorithms, there is a focus on quick profits, which can create market volatility. Large investment firms use powerful computers to exploit small patterns in the market, which leads to rapid changes in stock prices. These fluctuations may have nothing to do with the company’s actual value.
Robert explains how, as experienced investors, they aim to be smart by seeking investments that provide steady income and capital growth, while avoiding the chaos caused by technology-driven, high-leverage trades.
He also emphasizes the importance of investing in companies that offer reliable dividends, buying stocks when prices drop, and focusing on cash flow. At the same time, investors must be cautious not to over-leverage or take unnecessary risks. The goal is to achieve both cash flow and capital gains to maximize returns on investment.
Do you know what the three key components are for being a successful real estate investor?
They are good partners, good financing, and good management!
Robert begins by explaining this concept with a quote from Donald Trump: "A deal can't be successful with the wrong partners, though they aren’t necessarily bad people—just not the right fit for the situation."
Robert begins by explaining this concept with a quote from Donald Trump: "A deal can't be successful with the wrong partners, though they aren’t necessarily bad people—just not the right fit for the situation."
As an example, Robert shares his story about a 300-unit apartment project, highlighting the need for trustworthy and reliable partners.
His partners in the deal were his wife Kim, and two others—Ken and Ross. Together, they have successfully completed deals, faced challenges, and learned from them, growing stronger as a team
Good Financing:
Robert argues that real estate success is not just about location—it’s about securing the right financing.
He emphasizes that good financing can make even expensive deals work, while bad financing can lead to failure. For instance, he describes a scenario in which he could afford to pay $35 million for a $17 million property if the terms allowed him to pay only $1 a month for 30 years.
Robert also notes that paying high prices in real estate is common, as deals often rely on the buyer’s and seller’s financial strategies.
He shares a personal story about a property he once thought was overpriced at $2 million, which later became much more valuable when a major hotel chain showed interest.
This highlights the importance of having a solid financial plan and thinking big when it comes to real estate.
So, are you ready to learn what good management can teach us?