Cashflow 101 - Game strategies

[Russ H]

buckmajor-

The secret to cashflow is learning through playing.

Reading all the strategies before playing a bunch is like using cheats for video games-- sure you get there faster, but isn't the whole point to learn along the way?

So please don't think I'm being a jerk, but the best way for you to get your questions answered is to PLAY THE GAME-- and ask yourself the questions while you're playing.

And don't feel bad-- the vast majority of Cashflow 101 board game players would not be able to answer your questions-- because they've never played enough, or challenged themselves enough-- to figure out HOW TO DO IT! :groove:

-Russ H.

 

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[buckmajor]

I see thanks Russ

I'm playing the E-game by the way and hearing from the forum it seems a lot easier then the actual board game. However, I do know my IQ has increased a lot from the game and enjoy so much of it, every time I play by myself. I have no one passionate enough to play with me :nonod:.

Yes, you are correct, the point is to learn on the way. However, the game demonstrates so many great strategies that most of them apply for real estate or business investors. Unless I'm not looking hard enough and missed the very key point of playing the game :smx4:

buckmajor-

So please don't think I'm being a jerk, but the best way for you to get your questions answered is to PLAY THE GAME-- and ask yourself the questions while you're playing.

-Russ H.

Russ that was the best word of advice, taken into an account 'Asking the questions well I'm playing'

 

[Russ H]

'Asking the questions well I'm playing'

That's literally how we went from being 2 self employed entrepreneurs (who were *very* happy and successful doing what we were doing-- both of were making 6 figures) to 2 investors/real estate developers/B&B innkeepers who bought a business to improve it, use it to generate cashflow for other investments, and to (eventually) cash out w/millions.

The recession has hit us hard, but we're still staying above water. And if we can figure out how to make it through, we'll continue on our path-- albeit delayed by about 15 months.

Time will tell . . .

-Russ H.

 

[buckmajor]

That is awesome cause I was pondering about this some time ago when I started to know the game of CASHFLOW 101. What a time to stay above the water too, lucky our taxpayers in Australia are able to collect a tax bonus of $900 from our government which heaps a little.

As for me, I will keep playing until the illumination of my imagination appears :smx9:

 

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[ajahar]

is there anyone need the board game?

 

[IMSargon]

Here's my strategy. It works, but I feel it could work faster. Please comment on how you feel it could be improved. I play the eGame single player, and have no opportunities to play with others in my area.

I land on an opportunity. I subtract my current cash holdings from the down payment, round up to the next $1,000, and divide the result by 10. If this new result is less than the cashflow for the property, I buy it. I do this for Small Deals until I have about $5,000 cash and then I move on to Big Deals. I pay off my bank loans as funds become available, but I do not bother with paying off other loans.

Some users have mentioned that they start out on the Big Deals, but this method has not worked well for me. How does this technique not lead to bankruptcy? It seems if you take out such large loans right away, the expenses of the bank loans quickly outstrip the cashflow from the Big Deal.

 

[Russ H]

Sargon-

The e-game has limiters which make the game useless, and completely unlike the real world.

Why they did this, I'll never know.

It's in going big-- and learning how to manage and leverage your debt-- where Cashflow 101 (the board game) really shines.

Worth starting a club in your area-- or taking it to a real estate club meeting.

Or coming to our annual get together in Phoenix (where how we play will blow your head clear off). :smxF:

-Russ H.

 

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[WildFlower]

I have never played the online version.. so, I may be wrong. .. but, I would imagine there are limitations.. you are stuck in a "box" of how to get out of the rat race... (because of programming limitations)

When we played.. (Note it's been over 5 years since the last time I played.. it wasn't fun any more playing the game because I was doing it in real life and that was more fun!) But, that last game was an ahaa moment for my son.... he got a card to buy a property... he didn't have the money, it was a good deal. I said. I will put up the money and when we sell we split 50/50... (that's all I said because I wanted him to figure it out) .. he looked at me funny... I reaffirmed what I just said... he still looked at me funny. Then it hit him!!! OHHHH I get it! You put up the money, I manage the property, fix it up etc. then we split when sell! I said BINGO! ... he said yes.. then we continued.... we sold the property high! He looked at his money he just earned (after giving me half) and said… yeah but, this doesn’t really happen in real life (BTW – He was 13 years old) .. I said yes it does, that’s how we have done many real estate deals. It was certainly an ahaha moment for him.

FYI : if you play the game with your kids and their friends.. Explaining how debt works and income..etc. They just might go home and grill their parents with questions such as: How many credit cards do we have? How many properties we own? .oops! The parents weren’t too happy with me. :O

 

[buckmajor]

is there anyone need the board game?

I don't mind having the e-game, but the reports speaks of the board game a lot more educated to learn from.

Unless your offering, then yesss please I need the board game :smug2:

But, that last game was an ahaa moment for my son.... he got a card to buy a property... he didn't have the money, it was a good deal. I said. I will put up the money and when we sell we split 50/50... (that's all I said because I wanted him to figure it out) .. he looked at me funny... I reaffirmed what I just said... he still looked at me funny. Then it hit him!!! OHHHH I get it! You put up the money, I manage the property, fix it up etc. then we split when sell! I said BINGO! ... he said yes.. then we continued.... we sold the property high! He looked at his money he just earned (after giving me half) and said… yeah but, this doesn’t really happen in real life (BTW – He was 13 years old) .. I said yes it does, that’s how we have done many real estate deals. It was certainly an ahaha moment for him.

Wildflower can you please explain this one for me? I read it over and over but still can't catch it.

Thanks in advance

 

[ajahar]

I don't mind having the e-game, but the reports speaks of the board game a lot more educated to learn from.

Unless your offering, then yesss please I need the board game :smug2:


Wildflower can you please explain this one for me? I read it over and over but still can't catch it.

Thanks in advance

ok..just give me your email ok..tq..this is my email tusin1601{at}gmail{dot}com...

 

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[WildFlower]

Wildflower can you please explain this one for me? I read it over and over but still can't catch it.

Thanks in advance

Sure buckmajor!

It’s been a long time since I played.. so, my numbers may not be right.

My son got a card out of the deck with a sales offer to buy a single family residence for like 60k. But he didn’t have the money and I did and I knew it was a good deal. I offered to put up the 60k and we will split 50/50 when we sell it. (This is just one of many ways of doing a real estate deal) My son was the one that “found” the deal and in the real world he would have done the leg work to secure the deal. Later in the game he received an offer to buy card (and it was the high offer in the deck) for about 110k… again he would have done the leg work to get the property sold. So, he got 110k paid me back the 60k leaving 50k which we split 25k each. It was a win-win for both of us and he didn’t lose the deal and I received 42% ROI on this deal. In the real world he put in time on the property and I sat back and gave him the money and (spoke a lot on the phone)… of course there would have been fix-up costs and other costs but, it’s just the concept for the game.

The point IS .. we all want out of the rat race. .. it shouldn’t be who gets there first.. but, rather let’s all get there and it will be more rewarding! You know.. that saying “It’s lonely at the top.” .. that’s because you didn’t bring someone with you on your way up!

I hope I explained it better. There are many ways to offer. I could have just offered him a “finder’s fee” of say 10% then I take the deal myself. I could have loaned him the money even at 20% interest rate.. that didn’t come close to what I got.. because in the real world this deal could have taken anywhere from 2 weeks to – 3 months (or more depending on the situation)… you wouldn’t have made much. There was only 2 of us playing but, if others were there I could have included them and put up less money with less risk! There are many ways.. and low and behold very rarely are any 2 deals alike!

 

[buckmajor]

ok..just give me your email ok..tq..this is my email tusin1601{at}gmail{dot}com...

Are you for real?? Sweet Ok then, I sent you an email so just let me know ajahar

 

[buckmajor]

Sure buckmajor!

It’s been a long time since I played.. so, my numbers may not be right.

My son got a card out of the deck with a sales offer to buy a single family residence for like 60k. But he didn’t have the money and I did and I knew it was a good deal. I offered to put up the 60k and we will split 50/50 when we sell it. (This is just one of many ways of doing a real estate deal) My son was the one that “found†the deal and in the real world he would have done the leg work to secure the deal. Later in the game he received an offer to buy card (and it was the high offer in the deck) for about 110k… again he would have done the leg work to get the property sold. So, he got 110k paid me back the 60k leaving 50k which we split 25k each. It was a win-win for both of us and he didn’t lose the deal and I received 42% ROI on this deal. In the real world he put in time on the property and I sat back and gave him the money and (spoke a lot on the phone)… of course there would have been fix-up costs and other costs but, it’s just the concept for the game.

Wildflower!! That was awesome, this makes so much sense thanks a lot :smxB:.

Cool! I get it now, so you lent the money of 60k like an investor, when the property is sold for 110k, then you receive your 60k back, split 50/50 on 50k which is 25k and making it 42% ROI on the deal. WOW, I can't believe those numbers came to me like it was my first language, when I would normally struggle like in the past.

For a while, I was trying to figure out how a ROI works, until you explained it to me.

So who would pay for the fix-up costs and other costs?

The point IS .. we all want out of the rat race. .. it shouldn’t be who gets there first.. but, rather let’s all get there and it will be more rewarding! You know.. that saying “It’s lonely at the top.†.. that’s because you didn’t bring someone with you on your way up!

That is so thoughtful cause I have been thinking about helping out my family and friends one day when the RR is over for me :smug2:. Hopefully even to make huge impact and bless others as well.

I hope I explained it better. There are many ways to offer. I could have just offered him a “finder’s fee†of say 10% then I take the deal myself. I could have loaned him the money even at 20% interest rate.. that didn’t come close to what I got.. because in the real world this deal could have taken anywhere from 2 weeks to – 3 months (or more depending on the situation)… you wouldn’t have made much. There was only 2 of us playing but, if others were there I could have included them and put up less money with less risk! There are many ways.. and low and behold very rarely are any 2 deals alike!

This has opened up my mind, and like every bit of it. Are those kind of deals still out there, and would you still make ROI during the recession?

Thanks again

 

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[Russ H]

Are those kind of deals still out there

Yes.

and would you still make ROI during the recession?

Yes.

Details will be posted once we have closed/finished the deals.

-Russ

 

[WildFlower]

I’m glad I could help!

So who would pay for the fix-up costs and other costs?

Good question, I was wondering if you would catch that! Honestly it depends, if it’s minor say less than 3k then sometimes the “working-partner†would just pay it. OR if it’s a bigger overhaul.. then the investing partner may do it. Once trust is built.. it’s a beautiful thing. Of course who-ever paid the money gets it back off the top first… then the net-profit is split.

This has opened up my mind, and like every bit of it. Are those kind of deals still out there, and would you still make ROI during the recession?

Absolutely! It depends on where more so. I wouldn’t want to try to quick sell a house in Vegas unless I owned it out-right with little into it. There are areas that have held onto their values or lost only a small percentage. Banks are taking a spanking in California where 5 years ago.. good luck getting the bank to take a hit. But now…

I suggest networking.. networking.. networking. Go to Real Estate Investment clubs.. yes most are filled with over-ego’d jerks who think they know everything.. (At least in the States) but, there is someone in there who is a wealth of information, who knows others…etc. Learn .. Learn .. Learn… show up at foreclosure auctions and see who bids regularly. AND just because they have big egos doesn’t exactly mean he doesn’t know what he is talking about. Listen and ask questions. You will find that many of them invest so differently.

Yes.


Yes.

Details will be posted once we have closed/finished the deals.

-Russ

We love details!!! Sounds great Russ!

 

[bflbob]

Playing CASHFLOW with Russ is worth a ticket to Arizona any day of the week!

 

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[Russ H]

Merci, Bobbo!

(watching American in Paris-- guess some of it kinda rubbed off . . .)

Nice to see you in these parts, monsieur!

-Russ H.

 

[bflbob]

Re: FREE Flip This House online investment game!

Bob and/or Russ,

I am one those people who bought Cashflow a couple of years ago and it pretty much is a door stop as Russ put it (well, it's actually sitting in my closet). I did play it once w/ MathTeacher from the RD forums when I first got it but never did since. My plan was to get my wife to play it with me, but she doesn't show much interest in it.

Reading this thread has me wanting to find some people in the area to play it. My question is do you still find the game to be a relevant learning tool? Do you find the game to be self-adapting? Has is kept up with the changes of the past 3-5 years?

Hey Andy,

That is actually why I like the boardgame as opposed to the e-game. When we played at last year's B&P, (I think), we played with no bank loan ability. You could get the mortgage, but you could never go to the bank for a loan for the down payment.

You can change some of the key rules in the game to make it more realistic for the times.

So, if you can't borrow from the bank, you are forced to get creative for the down payment on an asset. Think partnerships, hard-money lenders, and seller-financing.

When inflation hits -- and it will -- start playing with a new rule: bank loans cost double.

When vacancies are an issue in your area, reduce the cash flow from rentals by $50/unit, or take a $400/unit hit if you roll a "6".

When stock prices are falling and bankruptcies are common, any stock price below $10 means a bankruptcy. Your stock becomes worthless.

I've said it before (well, maybe not, but I should have), and I'll say it again. Come to the B&P and play some cashflow. You'll learn more about business ideas in those 3-4 days than you will during a month of classes.

The B&P is Viagra for the mind.:smx9:

 

[Russ H]

bump.

-Russ H.

 

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[Bilgefisher]

bump.

-Russ H.

ok bump it is.

 

[TC2]

Don't laugh at me. I have heard CashFlow 101 over and over on this forum, but I have never pick it up.

Russ:

I was reading your post about how to play cashflow 101 and why play it.

My question is how do I get start before B&P. So I have better understanding what it is all about? Do I just go ahead to buy the board game? Do I play with other people with real cash? There seem to be many accessory or family package out there.

How different is Monopoly vs Cashflow 101? I was pretty good at Monopoly when I was kid, but it was straight for fun. I did not learn anything from that.

Thanks!

 

[bflbob]

Terrence:

No need to learn ahead of time. It is fairly easy to grasp, but tough to master. If you want a good understanding, grab a copy of Kiyosaki's "Rich Dad Poor Dad" or "Cashflow Quadrant".

He wrote RDPD as a "manual" for the game to help explain why the game functions the way it does.

 

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[bflbob]

I am pretty good at Monopoly when I was kid, but it was straight for fun. I did not learn anything from that.

Oh...but I bet you did! If you didn't, then you wouldn't have been pretty good at it. Same goes for CASHFLOW.

CASHFLOW is similar to Monopoly, but there are stocks, Doodads, and Financial Statements!

Monopoly = Go Fish!
Cashflow = High-Stakes Poker

 

[TC2]

CASHFLOW is similar to Monopoly, but there are stocks, Doodads, and Financial Statements!

Monopoly = Go Fish!
Cashflow = High-Stakes Poker

Ah. That explain well! Thanks!

 

[OrionSnake]

Don't laugh at me. I have heard CashFlow 101 over and over on this forum, but I have never pick it up.

Russ:

I was reading your post about how to play cashflow 101 and why play it.

My question is how do I get start before B&P. So I have better understanding what it is all about? Do I just go ahead to buy the board game? Do I play with other people with real cash? There seem to be many accessory or family package out there.

How different is Monopoly vs Cashflow 101? I was pretty good at Monopoly when I was kid, but it was straight for fun. I did not learn anything from that.

Thanks!

Hi Terence,

I don't have the boardgame version but I have the computer version of it.

You don't play with real money. In fact, I don't think the boardgame comes with paper money. I believe you record everything on financial statements/balance sheet such as income, expense.

You play the game like monoply (with dice and tokens).

The board has 2 areas: slowlane (rat race) that goes in circle and a fast lane. You start in the slowlane and move tokens in circle and land on opportunities, doodads, etc. You have to stay in rat race to earn certian amount of cash flow before moving to the fast lane.

Objective of the game (at least in the PC version) is to achieve your dream that you pick at the beginning of the game. By the way, you also pick a career that dictate your monthly income and such.

 

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[Graham Chong]

Thanks andviv for the link.

This thread deserves a bump!

 

[tamo42]

The board version definitely comes with paper money (as well as p&l / balance sheets).

The objective of the game isn't so much to buy your fast track dream, but to learn how to use capital gains and cash flow investments to free yourself from your job.

 

[bix]

monopoly is my game but haven't seen cashflow

 

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[treinjapan]

I was reading through this thread the other day, as someone bumped it. I remember the game pretty well since I used to play it like 7 years ago with friends in college. I've since moved to Japan. So after reading this thread, I was thinking "This is neat, but I'm pretty sure i'll never see that board game again....". Lo and behold, while playing Monopoly Deal with some guys the other night, I mentioned it, and it turns out one buddy has the board game! And apparently the board game + DVD series is $700 in Japan, haha.

So we pulled it out and started playing last night for the first time in years. It was fun!

But there's a big factor in the game that doesn't really work in Japan. In the West, it's not absurd for a building or property to go up in value; it happens all the time. In Japan, with our decreasing population, land prices rarely go up, and building prices absolutely do not go up. (They're thought of as cars- they're "used" so they decrease in value.) On top of that, most houses are only made to last 30-40 years, and then need a major remodeling or they are taken down and rebuilt fresh. And the situation is similar with buying a condo unit. Any potential cashflow is eaten up by the monthly "maintenance fees" required by the building owner.

So what are your guys' thoughts on how we can make the real estate deals more "realistic" for Japan? I'm sure it's possible to pull a positive cashflow if you buy at a super-low price in Japan, but then you have the expense of rebuilding/remodeling or the maintenance fees to deal with.

 

[Guest-5ty5s4]

Extremely old thread but wanted to bump it. This game is still out there.

Anyone new (2021) play this game and apply strategies in real life?