Deal yourself up a winning hand with cashflow 101 .
The most successful real estate investors learn early that cash flow is one of the most immediate real estate investing strategies that needs to be incorporated into their business plan.
However, it is never too late, or too often to evaluate, adjust, and add new streams of income to your basic cash flow 101 strategies.
Cash flow is not limited to real estate it also takes into consideration all related aspects. For instance, you may have a small monthly cash flow from vending machines, washers and dryers, signs, billboards, storage and parking, or cell towers on your property.
Finally, its the right time to buy properties for cash flow. Rental rates are high and interest rates are low. Buying and holding strategies are generating high levels of income for both single family houses and multi family.
Cash flow, it's that tricky little wild card that eludes the best of investors. But it will not elude you. Imagine limiting your responsibilities and risk while creating generational wealth without buying properties, signing on mortgages, having good credit, or dealing with tenants.
Cash flow notes are a strong investment strategy but with notes the investor earns a passive income. The interest earned is well above prime and the note is secured by the real estate at a 70% LTV (loan to value)
Notes can be easily created when selling a piece of real estate.
Consider holding paper, the first mortgage or a small second mortgage on the real estate, you can get some of your profits while creating a cash flow stream. This allows you to passively collect money without any of the responsibilities associated with the day to day operation of the property.
CASH FLOW 101 HOW TO GET IT
A new real estate cash flow opportunity has surfaced due to foreclosures.
When buying and selling REO bulk packages of foreclosures and bank owned real estate pull one property out of the package and make it the start of your monthly real estate cash flow strategy. (But do not break the integrity of the package)
Wholesaling and house flipping will ensure a fast infusion of instant money into your business. Use software to keep your cash flow 101 system automated and to reduce work overload.
Quick bursts of money from sales are great ways to give your real estate business a jump start but over the long term a steady real estate cash flow will sustain your business and ensure that you will not starve waiting on your next big deal. It will also let you plan a steady path for growth and it shows income for loan requirements.
CASHFLOW 101 OTHER ADVANTAGES
Two other types of cash flow that many do not think about because they do not show up instantly in your bank account each month.
The first, tax savings through deductions and income dispersed over a long period of time avoids capital gain taxes and penalties. The second, appreciation. Time grows our investments as sunshine grows the golden crops.
Cashflow 101 states that an asset must steadily and consistently repeat itself by generating a desired return for a designated period of time. Breaking that down - the money keeps automatically coming in over and over. No matter what you are doing or where you are.
Deal yourself up a winning hand.
Integrate several cash flow strategies into your business plan for overall optimization. Work the money and work it smart. Take control of your future and with the next real estate deal create a positive monthly real estate cash flow and start establishing long term wealth.