Saturday, August 17, 2013

33 Guidelines for investing in real estate................

Guideline #32:   Cash flow is king.

Trust me when I tell you that running out of cash is a bad thing.

Trust me, also when I tell you that a portfolio of well-managed investment real estate, patiently acquired and lovingly nurtured over time, can provide an unending stream of cash.  A good thing.

There are contending schools of thought on what to do with real estate that generates ample cash flow.  One is to sell and amass a very large capital gain in the form of cash in exchange for the deed to the property.  A second is to refinance and amass a very large pile of cash in exchange for more debt.  A third is to leave well enough alone and gratefully receive monthly distributions of cash flow.   People's needs and situations are all different.  There is not a one-size-fits-all answer to the question, but isn't it a great question to ponder.

After all, if you have a problem that has a financial solution, and your investments generate the cash flow to solve the problem, do you really have a problem?

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