Rentals Should NEVER Be Your Real Estate Investing Lead-In Strategy

Posted on Mar 1 2017 - 4:25pm by Lance Edwards

leearnold2By Lee Arnold  —  I’m always fascinated by the investors who tell me that they own 10 rental properties. My question to them is, “What’s your average cash flow per property?” Often the answer ranges between netting $150 to $200 per property. Basically they are managing 10 units and making $1,500 a month. Is that really the best use of time when they could be finding great deals, wholesaling them for $10,000 to $20,000 a pop, and making $20,000 to $50,000 a month? The same thing goes for private money brokering. Wouldn’t it be smarter to make great brokering fees by brokering private money loans to other real estate investors?

Although I have been accused of being anti‑rental, I’m not. I own rentals, but it’s not my predominant lead-in strategy. My predominant lead in strategy for all investors is to get you to a point where you have at least $250,000 in liquid capital available to you at any given time, whether it be in a bank account or a self‑directed IRA. This is your first benchmark to strive for. Only then should you buy and hold properties. However, NEVER use your own money to buy and hold. Use partner or investor cash, which is why you always need to have private money relationships. Your personal funds should only be reserved for wholesaling and flipping, which generate those big lump sum paychecks. Never cul‑de‑sac your cash, meaning don’t put cash into an investment where there’s no immediate, what I call “liquidity event” from a sale or a refinance.

That being said, we want to build a private money relationship with you! Utilize my cash to fund your next deal? Fill out this quick application for funding today! (We’ll beat our competitor’s prices!) Just go to and let’s work on getting your next deal funded so you can experience a “liquidity event” soon too!


Who is Lee Arnold?

After Lee developed his highly acclaimed Foreclosure and Short Sale Courses, he began to speak all over the country on these two profitable strategies.  In all of his travels he was constantly bombarded by the same question, “Where do I get the money”?  Tired of seeing dreams dashed over something so simple, Lee immediately set out to create the most comprehensive curriculum on the subject of Private Money ever complied in one place.

Recently featured in Forbes, the Boston Globe, Market Watch, Reuters, and Business Week as a leading investment strategy expert and as a consultant to Donald Trump’s, “Trump University”, Lee Arnold has built a personal fortune with private and hard money transactions. As a Real Estate Broker and Lender of both Private and Hard Money, Lee Arnold has helped countless people in the United States and Canada successfully and lucratively obtain the capital they need to be successful in real estate investment. A master at networking, Lee connects investors to lenders from all over the United States and Canada.

Lee created The Lee Arnold System of Real Estate Investing to teach clients how to translate workbook education and real estate theory into the real world of real estate investment success. However, after years of teaching and mentoring around the nation, he found that education doesn’t mean a lick, if the person being taught doesn’t have the capital to put their knowledge into genuine action. Lee already had access to capital, but his students didn’t.

So, Lee took the challenge and created Cogo Capital®, where real estate investors could go for unlimited funds for their non-owner occupied investments. Since then, Lee has been involved in over 1 Billion Dollars-worth of real estate deals with clients.

While the progression seemed natural, they were missing one, very large and essential piece of the pie. The marketplace was teeming with people who had the funds, who aspired to make higher returns on their invested dollar, but lacked the desire to get involved in real estate at the ground level.

In light of this opportunity came Secured Investment Corp, which gave people the training they needed to safely lend on first trust liens (real estate), and make higher returns than they were currently seeing in their stock market, bank CDs, or bond investments. As we combined all these facets—training, funding, and the education to lend on real property—we began to notice a progressing trend of growth and success with the clients involved.

Through this model, what we call “The Circle of Wealth,” we noticed that people who entered in at the training level and borrowed funds for their real estate investments, eventually became lenders in their own right. They then helped others obtain the capital needed to grow their real estate portfolios. This allowed everyone, on every side, to succeed.

It is our goal that everyone can enjoy some level of success in The Circle of Wealth, and inevitably lap it several times over.