Posted in Cash Flow Properties

Cash Flow Properties

Cash Flow Properties

There is nothing like the real game of monopoly buying and owning properties while others pay you rent.  Really, what a great way to create wealth to have others pay you rent.  The thing about rent is that it gets paid while you’re in town or out of town, awake or asleep.  What a concept!  Getting paid while you sleep.

Isn’t that what business is all about?  The idea of a business is not to be a slave to the business but to have it operate without you.  If you have a business and you are working in it ten hours a day then you really are a wage slave – not a business owner.  Businesses should operate without you in the long run. Just like CASH FLOW PROPERTIES.

Now, the idea of cash flow properties is nothing new but the way we go about finding them has changed considerably in the last five years.  Most investors use to buy properties by putting a down payment down and taking out a mortgage to finance their acquisition.  They added risk to the equation the minute they took out that financing.  Ideally, the rent would cover all the expenses of the property; management, real estate taxes, homeowners insurance and repairs.  What is left over is called cash flow or in problematic situations negative cash flow.

You see, many well intended investors from a far would invest in the hot spots like Florida and all was good while prices escalated and the rent was coming in.  Then came the real estate crash.  These well intended investors were upside down on their mortgage because prices dropped and expenses went up.  That is; they owed more than the house was with worth and they were losing money every month.

Today’s market is different.

Astute investors are taking advantage of the steep decline in values and buying houses for cash!  Obviously, properties cash flow a lot better when you remove the risk of financing.  Not all properties cash flow the same.  You must be diligent not to get mislead on high returns on junk properties in bad neighborhoods.  Now is the time to buy quality houses in good neighborhoods for CASH!

Cash flow only counts when you get it.

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