Alex shares why he is building up his cash reserves and getting smarter with his money. As everyone knows, real estate has cycles and the last thing you want to do is be thrown in with the sharks when the market turns.
- Where are we in the real estate cycle right now?
- Don’t try to time the market.
- Get smart with your cash and build up reserves, so that you don’t get hurt when the market turns.
- The market will correct itself, it’s just a matter of ‘when.’
- Always build relationships with lenders and potential JV partners.
- Know your market and be careful with the types of rehabs you’re getting into.
- Make sure you’re paying yourself first.
- Amazon keeps 3% of their market cap in cash reserves.
- NVR Inc. keeps about 20% of their worth in cash.
- If you have a risky business model, you should have more cash reserves on hand.
Mentioned in This Episode:
Feel free to connect with Alex about doing a JV! Email him at firstname.lastname@example.org
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Profit First: Transform Your Business from a Cash-Eating Monster to a Money-Making Machine, by Mike Michalowicz
“It’s very difficult to try and time the market.”
“History is a predictor of what’s to come to the future.”
“If you guys have a lot of cash tied up in fix-and-flips… be careful.”
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