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Real Estate Investing

  • May
    20

    Real Estate Investing – How do You Spend Cash Flow?

    Many real estate investors are losing their investments as single family houses or duplexes because they simple did not get the proper education before, during their real estate investing years. If the investor loses their job then their investment property goes to foreclosure along with their personal home.

    I talk to investors on a weekly basis that are upside down on their properties because of over financing, refinancing, or simple putting too much money into their investment properties. These individual investors are losing their houses and duplexes to foreclosure simple because they didn’t understand the concept of Positive cash flow!

    Do you know how to figure out if your property you are going to purchase will have Positive Cash Flow? Or is the Real Estate Agent telling you the property is a good deal and it cash flow? If the agent is telling you it cash flows, ask the agent, if they are going to pay the mortgage for you if your property is NEGATIVE cash flow?

    My first property I purchased has Positive Cash Flow however I did forget to figure in other cost prior to making my offer. After being a real estate investor for over 4 years my first investment property clearing is a reminder for me to NEVER overpay for an investment property as I did on this one.

    It’s critical to understand Positive Cash Flow before buying your first investment property. I purchased mine on the 1% rule. For those of you who don’t understand the 1% rule is an explanation. Property is selling for $90,000 and rents equate to $900.00 per month. According to the 1% rule your property will cash flow. Take a deeper look at the numbers than going off this simple little equation. For instance, how much work needs to be completed on the property in order to keep the current tenants or how bad has the building deteriorated? This is an area where I made my first bad mistake.

    Cash Flow is King! Without it you will end up losing your all of your hard earned work to the banks or another real estate investor. Without positive cash flow, you become a MOTIVATED SELLER quickly!

    Cashflow Cindy

    P.S. Invest in John Dessauers Property Management course to gain your financial freedom with Positive Cash Flow.

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