The big money in real estate does not come from cash flow.
But as sophisticated real estate investors we’re taught to only look for properties that produce positive cash flow.
That properties that produce negative cash flow are bad.
If the rental revenues don’t cover the expenses and debt service – it’s not good.
Hide from those.
And that’s 100% correct.
We are big fans of cash flowing properties.
Here’s the problem…
Most people, and especially beginner investors, believe that successful investing is all about cash flow.
(img: sam ames)
Shortly we will enter that famous time of year.
The one when we all talk about our goals for the upcoming year.
With great hope and excitementRead More
(img source: Juan Freire)
The opposite of success is not failure.
You NEED failure to progress forward.
To move closer to your goals.
Without failure you areRead More
Last week I was chatting with a self-proclaimed real estate investor and the conversation was unfortunately rather typical.
We briefly chatted about how excited heRead More
(img: kyle ruth)
It’s never a good time to buy rental property.
Not a day goes by without something proclaiming this to us.
Prices are too high.
Demand from tenants is too low.
The market is saturated.
In 2008 the world was coming to an end.
In 2013 the bubble isRead More
The last time we commented on the state of economic affairs in the world on this blog we got some interesting (aka … nasty) emails claiming that we were spreading unnecessary fear.
Things are unnecessary only until they aren’t.
With that, let’s proceed shall we?
Yesterday the Financial Post reported: Bank of Canada Drops Rate Guidance, Lowers Growth Forecast. Some highlights:
“OTTAWA – There has beenRead More
(img: the foreign photographer)
My kids are already talking about going to University.
They’re 7 and 11.
Funny how we guide our children – almost unknowingly.
But you know what…
Although University was extremely valuable, my best “life skills” came from my newspaper route, my $3.50/hour job and moving pee.
Let me explain…
I remember delivering newspapers to this one lady’s home on my street for several months without her paying.
There was no “auto-billing”Read More