Jason Hartman

I understand that.

I'm just giving you an example, but in other words, if you get, if you use a lot of leverage in your deal, okay.

And, and you get a small amount of cashflow, it could still be a very good deal because that leverage is making you money.

Okay.

in it's a multi-dimensional asset class it doesn't just come from cash flow if it just came from cash flow uh you know that that would be like the the very myopic conversion of an uh version of investing there's much more to it than cash flow although that's one metric but you can increase your cash flow dramatically by just putting a hundred percent down but if you if you have that cash to put down

Right, right.

And if you have that cash to put down, then you would be stifling your growth because you would be waiting to buy your first single property until you saved up every ounce of cash and you would have no leverage on that deal.

The reason income property is so valuable is that you get leverage.

You get to use OPM, other people's money to buy, you know, 75, 80% or even 90 or 100% of the deal.

In which way?

You don't do it by cash flow.

Of course, use other people's money.

If the value decreases, if the cash flow, which is very reliable, is still there working, it's still a very good deal.

Listen to me.

Okay.

I've done this thousands of times.

Okay.

You've got to go look at a performer that includes a lot more than cash flow.

It includes cash on cash return.

It includes overall return on investment and the ultimate metric internal rate of return or IRR.