First, what is a cash flow Real Estate Investment? It is an investment that has a tenant or a number of tenants in it and the rents that the investor receives covers all the expenses and there is money left over. A common question for Real Estate Investors to ask is, "Does it cash flow?" That means does the income at least cover all the expenses. One of the Reasons that Real Estate has proven itself to be the best investment is that there are 3 ways to make money with cash flow Real Estate. First is the general appreciation of the market. Historically, although Real Estate prices generally follow a roller coaster of 9 to 12 years, the trend has always been up. Second, although it is a small percentage of your mortgage payment, your tenants are paying down your debt every month. Lastly, if the investment cash flows and you have money left over at the end of the month this adds to the investment value. One thing an investor sometimes does with that money is to put it on the mortgage and pay down the debt faster. Cash flow Real Estate has insurance built into it. If the market goes down you can lower your rents to keep your investment rented and you simply break even. You still have someone paying down your mortgage for you and the market always comes back. If you are interested in buying cash flow Real Estate please give me a call and we can start the process. After all.... the market is rising.
Cash is King
- June 29, 2015
CENTURY 21 Executives Realty Ltd.