This is why we love the value-add principle and work to return investor capital as fast as possible. Buy and hold is great-- buy, refinance, and hold is better!
🏡💰 𝑼𝒏𝒍𝒐𝒄𝒌𝒊𝒏𝒈 𝒕𝒉𝒆 𝑷𝒐𝒘𝒆𝒓 𝒐𝒇 𝑬𝒙𝒑𝒐𝒏𝒆𝒏𝒕𝒊𝒂𝒍 𝑰𝒏𝒗𝒆𝒔𝒕𝒊𝒏𝒈 𝒕𝒉𝒓𝒐𝒖𝒈𝒉 𝑽𝒆𝒍𝒐𝒄𝒊𝒕𝒚 𝒐𝒇 𝑪𝒂𝒑𝒊𝒕𝒂𝒍! 💰🏡 𝐖𝐡𝐚𝐭 𝐢𝐬 𝐕𝐞𝐥𝐨𝐜𝐢𝐭𝐲 𝐨𝐟 𝐂𝐚𝐩𝐢𝐭𝐚𝐥? It refers to the speed at which your invested capital moves through various investments and generates returns. Essentially, it measures how quickly you can reinvest your profits to grow your portfolio. A high capital velocity means you can recycle your money efficiently, leading to increased overall returns. In other words, the sooner you achieve a return on your investment, the sooner you can reinvest that money to compound your wealth to generate exponential returns. 𝐄𝐱𝐚𝐦𝐩𝐥𝐞 𝐒𝐢𝐭𝐮𝐚𝐭𝐢𝐨𝐧: Imagine you have two investments you're looking at: Investment A and Investment B and both plan to double your investment after 5 years. -- Investment A refinances and returns your capital after 12 months -- Investment B refinances and returns your capital after 24 months If you invest $100,000 into investment A, you will have your $100,000 back in 12 months and be able to invest in a similar investment (with the planned extra return coming over 4 years). That means after 24 months, you'll have your $100,000 back, but be invested in two deals that each plan to give out another $100,000 return. You've now 3x'd your investment vs 2x from Investment B. 𝐕𝐞𝐥𝐨𝐜𝐢𝐭𝐲 𝐨𝐟 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐚𝐥𝐥𝐨𝐰𝐬 𝐲𝐨𝐮 𝐭𝐨: 𝐌𝐚𝐱𝐢𝐦𝐢𝐳𝐞 𝐑𝐞𝐭𝐮𝐫𝐧𝐬: The faster you can reinvest your capital, the quicker your portfolio can grow. It’s all about putting your money to work efficiently! 𝐋𝐞𝐯𝐞𝐫𝐚𝐠𝐞 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬: By grasping how quickly you can turn over investments, you can seize market opportunities before they slip away. 𝐂𝐚𝐬𝐡 𝐅𝐥𝐨𝐰 𝐅𝐨𝐜𝐮𝐬: Monitoring the flow of your capital allows for better cash flow management, which is essential for sustaining and scaling your investments. After all, equity can't buy groceries. Ready to elevate your investing game? Let’s dive into the details and start maximizing your capital today! https://lnkd.in/gxr6AZSV #realestateinvesting #realestateinvestor #realestate #doglover #investing #investors