By now you must be thinking to yourself: Recycling cashflow
into acquisition capital seems to be the no - brainer method of choice among the two.
With a current enterprise value of $ 120 million, it's fair to say that the return on
deployed acquisition capital over the past six years has been abysmal.
For the Premier transactions, although the owner originally sought permanent acquisition financing, when it became apparent that such financing would not be available in the required timeframe, Red Capital Partners bridged the timing gap and provided
acquisition capital while the permanent solution was being secured.
The second method to increase the velocity of money in your real estate investments is to recycle the positive cashflow produced by your properties
into acquisition capital (down payment) for additional properties to acquire according to your Blueprint.
When you recycle the cashflow into
acquisition capital, it will earn a higher added return but it involves the acquisition of another asset.