cash flow positive property
It’s simple, but important.
I want to tell you something which is simple, but terribly important if you seriously want to build wealth and stay in the property investing game for the long term.
Everybody needs Cash Flow!
A little while ago, I had a discussion with a young lady who is raising four children as a single mother and relies on government assistance for much of her income.
Her investment strategy is to buy up properties over the next few years so that in six years time, when the government payments stop, she can afford to keep living.
Because she doesn’t need the cash flow today, she recently bought a cash flow negative property (to the tune of $20 per week after all deductions).
Whilst I admire her for having the courage and foresight to invest, I question the logic that says “I don’t need cash flow”.
Let’s think about some of the benefits of positive cash flow for a moment:
1. If your current portfolio is cash flow positive, lenders will look favourably upon your future loan applications.
This is because your ability to service more borrowings actually improves with each subsequent property purchase rather than being drained.
2. Positive cash flow helps create a cash reserve to handle vacancy periods. This lets you sleep well at night, which after all, is the smartest way to invest in my opinion.
It makes sense right?
3. If your aim in investing is to support yourself in the future why not enjoy a good cash flow today as well as tomorrow, by focusing on the type of property that provides it?
I invest in cash flow positive real estate for this reason: you can be making money today as well as in the future.
PLUS, my bank manager prefers to see money coming in each month rather than going out.
Warm Regards
Hans Jakobi – Your Wealth Coach®
Real Estate Secrets
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Comments
Comment from chun
Time: March 12, 2008, 10:49 am
wonderful
Comment from t.w.atkins
Time: April 24, 2008, 12:06 am
just like your tip i think that cash flow positive is the way to go
Comment from Penelope Whiteley
Time: April 28, 2008, 4:24 pm
The problem of course is in finding properties that CAN be positively geared. As far as I can tell, it’s rare to find them; unless you have some brilliant thoughts on the subject?
Comment from admin
Time: April 29, 2008, 1:55 pm
Penelope, its certainly harder to find cash flow properties in the post boom market however it is still possible. That’s what I teach in the Super Secrets To Real Estate Wealth course.
You see, many people run off half cocked thinking they know what it’s all about and try to find positive cash flow properties without knowing ALL the information.
Many of these people end up learning the hard (and expensive) way.
Years ago you could find good deals on the internet directly.
These days however, information about new property listings is sent out to hundreds and possibly thousands of people at the same time so you have to use the internet differently if you want to stay ahead of the crowd.
These are the sorts of things you’ll learn about in my course. Hans
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