Positive Cash Flow is Very Powerful.  Why?

• An investment based on positive cash flow is not a speculative investment, since return on investment does not depend entirely upon the uncertain future market value of the asset.
• Cash flow means you receive return on investment while you still own the asset.
• Cash flow means the risks of not receiving the anticipated overall returns are reduced.
• Cash flow means you can continue to own the asset while it appreciates in value, yet you don’t suffer a drain on other income when it requires maintenance or repairs.
• Cash flow means you can afford to own the investment for a long time, so its value can appreciate substantially before you dispose of it.
• Good cash flow enhances value, so buyers will pay you more once you are ready to sell.

Even if the property is a holding property for future development, cash flow allows you to carry the property.

Real estate investments can be placed on a spectrum ranging from “pure development” projects with no cash flow to “pure cash flow” investments, such as conventional mortgages. 

» To continue to the Investments on the Cash Flow Spectrum section, Click the Cow

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