Which Type Of Cash Flow Is Best For Your...

What do we want?

Cash!

When do we want it?

Now! (Well, maybe…)

There’s no doubt that you need to make money from your real estate investing business. It’s the first step toward achieving financial freedom. But is it better to earn cash now or later?

Well, let’s find out...

Hey Moguls, Cody Sperber at your service. One of the financial aspects of your business that needs careful consideration is the type of cash flow that is best suited to your overall goals.

You can have 3 options:

Cash now
Cash flow
Cash later

I know you’re probably thinking, “Um, can I have all 3?”

Answer: yes.

But probably only when you have a lot of experience and properties under your belt.

Initially, when you’re building your real estate investing business, you need to choose a specific strategy that is going to work best for your business model. So, pick one type of cash flow to focus on first.

Define Your Strategy

Before you make a choice, let’s take a close look at the 3 types of cash flow.

Cash now can be achieved in several ways:

Fix-&-flip properties
Wholesale properties
Find properties that are owned free-and-clear, and develop a creative financing deal with the seller that will earn you some cash

flow In my opinion, wholesaling is the best option for making quick cash. It’s a low-risk strategy that will earn you thousands in the course of 1-2 months.

Still... all of these options are valid ways of making cash fast.

Cash flow is usually achieved by building a portfolio of rental properties. Again, you have a few strategies for doing this:

Purchase notes
Develop creative strategies with sellers to take over their financing
Carry back a loan (meaning, the seller finances the loan)

There are many ways to get creative when building a steady cash flow. Sometimes, it takes a little bit of trial and error to find what works for you. Take some risks, but don’t take major risks.

Cash later is very straightforward: you acquire properties that appreciate over time; and you are willing to wait years to take advantage of that equity.

“The key to building wealth is to preserve capital and wait patiently for the
right opportunity to make the extraordinary gains.”
~ Victor Sperandeo, trader and financial commentator

Decisions, Decisions

Which cash flow is right for you?

Well, it’s time for a pop quiz! Don’t worry, I’ll take it easy on you...

Here are a few questions to ask yourself:

How much cash do you have available now?
How much risk are you willing to take?
How much time can you dedicate to your investing business?
If you could only choose one, which is most important to you: cash now, cash flow or cash later?

Your answers should point you in the right direction.

For instance, if you’re not gung-ho about taking any kind of risk, wholesaling (cash now) could be a good option.

Or, if you don’t have much time to devote to your investing business, cash later might be your best bet.

Take some time to reflect on your responses to the self-assessment above. If you’re still not sure about which road to take, it can be helpful to talk with a fellow investor.

In the end, you’ll find your answer, which will help you build the investing business you’ve always hoped to achieve.

Now, It’s Your Turn

Do you focus on cash now, cash flow or cash later? Tell me about your experience (and the pros and cons you’ve encountered) in the comments section below.