I had lunch the other day with a multi family and commercial investor who buys from me for his company. We talk a lot about real estate investing and he shares his experience with me.
6 - 4 unit apartment building
5 - Commercial & Industrial warehouses that are leased and cash flowing well.
I asked him what he thought about purchase price and cash flow, he said “i dont really care about purchase price and cash flow”, " I mean I negotiate down what I can but I dont sweat it if i dont meet a certain price point"
He doesnt just randomly purchase properties but his business funds his purchases but he said it matter if it cash flows or not because once he pays it off then he has that passive cash flow for the rest of his life. He told me even if im cash flowing negative a couple of hundred use my personal income to cover it. He also said if I really want the cash flow to refi after a year or two and I might get something back each month. He doesnt really buy for cash flow now but for the cash flow when he has paid it off.
What do you guys think?