Why Cash Flow Beats Cash Any Day Hands Down
Don't you sometimes feel envious when you hear how someone boasts how they bought a property at 20% or more under market value? Great price! But did you ever stop and ask what ongoing terms it was bought at? That's the cost part that may get shoved to the side.
As with anything, that's what we call a one-off cost as opposed to an ongoing cost. Just think about in terms of buying a top-of-the range washing machine that just goes year-in-year-out with little or no maintenance compared to the cheaper model that often breaks down at the wrong time and needs replacing much sooner.
You need to be thinking about instant cash and ongoing residual cash income in the same way. One is a short sharp injection whilst the latter is an ongoing steady stream of financial fuel to keep you going!
But what's wrong with an adrenalin rush of instant cash? Nothing! I'm sure we'd all love one every now and then. The main downside is that income such as that can often be sporadic and volatile as to when it will come in. Constant incoming cash flow on the other hand leads to greater certainty to accommodate the ongoing ebbs and flows of business. It also makes the bank manager's job easier to see regular and reliable income sitting on the right side of the ledger.
Just look at all those instant lottery millionaires out there that won it all overnight, only to give it all away within the following five years. The cash did not help them, since all they did was apply their previous bad habits to spend their way back to where they were before the windfall.
One this I like about cash flow investing with my buy-to-let properties is that I get both a constant income stream, plus that lump sum cash injection whenever one of my properties are finally sold and I realise my back-end profit. For properties around the national average, so long as I buy well and on sell at a realistic market price, then I only need around 6 properties generating income at any one time in order to replace your job. Just 6 properties can give you back the 48 weeks that you sacrifice for somebody else and start doing the thing you want to do, often meaning you can spend that time buying even more cash flow properties, or even those you hold onto flow the long term.
David Lee has over 20 years experience developing business solutions to systems in finance, banking, recruitment, transport, public utilities, and since 2002, in property. David has trained and worked with some of the most successful business tycoons in that time, and has helped in the development of cash flow property systems designed for UK property investing.
If property investing or business systems development are of special interest to you, David is at the forefront of how you too can benefit from his vast experience.
David's website can be found by
Source: http://ezinearticles.com/
Added: March 22, 2008
Fulton Financial Corporation Declares Quarterly Cash Dividend - CNNMoney.com
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