The other day a potential deal fell into my lap.
A friend (who’s not an investor) sent me an apartment deal to partner up with (1 unit not the building — more like a “penthouse”).
It’s in Lisbon, Portugal (he lives there).
As a potential STR (short-term rental) for only $13k down.
I’m a conversational Portuguese speaker. I’ve been to Lisbon and yes it’s a hot Airbnb market.
… And the allure of telling people “I own a vacation home in Lisbon” appeals to my fat ego.
But being the prude investor I am, I started asking:
“What’s the neighborhood”
“What’s the mortgage”
“What are the property taxes”
“What do you think it’ll bring in rental income every month”
“Why are they selling”
I asked these cause he actually lives near there and has insight..
… I got no response.
Maybe I should jump on it… heck it’s only $13k.
But the little devils on my shoulder slapped me in the back of head and shouted:
“What’s the yield?”
To know how well your Cash is working for you, you have to measure it against what else is out there.
If I whipped out my handy dandy financial calculator and the yield from the cash flow alone was 9% plus… Ok, I MIGHT consider it.
Fortunately, for me. I don’t need that.
I’ve come across a little tactic that’s been giving me 1% a week yield on my money (when I do the work). If you think I’m going to be spitting out some kind of course/book on this^, think again… I’m not. At least not yet until I’m VERY comfortable with it and have serious proof of concept — it’ll probably be a while.
Anyway…
If you’re lost in this…
And you have no idea what your yield is, or what a “financial calculator” is…
I highly advise if you’re going to be an investor (not just an REI operator), then jump on Gary Johnson’s link below and get yourself Jimmy Napier’s book:
And if you’re feeling eager, get one of his courses.
He’s not a guy you’ll see on YouTube or Social.
He’s old school.
And a guy that’ll run mind circles around the new hip “sub 2 gurus” you see today.
– Paul do Campo
P.S. That’s not an affiliate link at all. Gary probably doesn’t remember me, and I’ve never spoken to him outside of his live classes.