Well, it's official. The cash flow challenge begins today. What cash flow challenge you say? Let me enlighten you...
A few weeks ago Justin Williams, a fellow investor friend of mine thought it would be a good idea to have a competition that would push both of us toward the ultimate goal in our real estate centered business life, financial freedom. You know, the point in your life when you wake up and realize you don't need to get up and work today because the rent checks that have just arrived in the mail box are more than enough to cover all your expenses for the month. You are now free to do as you choose. Financially free. Anyway, the challenge was issued as simply the first one to reach $4,000 in monthly positive cash flow wins. What's at stake? The loser sends the winner and spouse on a cruise. The challenge was accepted and the word was getting out.
Since that time, the challenge has grown and morphed into a 4-way "team" challenge featuring some more investor friends of ours. Team Justin & Doug vs Team Bill & Kevin. After a lunch meeting in a dark and musty Italian restaurant (more dramatic), the rules were laid out:
- First team to arrive at a documented $8,000 net positive cash flow will win. (total rent X 30% expense ratio - debt service & property management fee's etc = net cash flow)
- The team must maintain the $8,000 for 2 consecutive months.
- All types of real estate which is purchased for cash flow in which a "tenant" pays some sort of rent will be allowed. (i.e. 1-4 units, apartments, mobile home parks, office buildings, etc)
- All forms of financing the properties is allowed and encouraged. (Conventional, Hard Money, Private Lenders)
- Any currently owned cash flowing property does not count.
- Each team will fully disclose their progress along the way.
I'll post updates on the blog periodically so please follow the blog if you don't follow it already. You can also read about it on Justin's blog.
I'm going to enjoy that cruise!
