The How-To Of Cash Flow Real Estate Investing
If you want to get wealthy in real estate, you’re going to need cash flow.
Almost all wealthy people have real state investments, passive income, stock accounts, and cash flow. When you invest in long term wealth, you can create streams of cash flow so that you may reinvest and receive surplus income.
Of course, generating cash flow is not as easy as it seems, otherwise, we would all be doing it. To grow your cash flow, you must first understand what it is that generates cash flow.
What Generates Cash Flow?
There are a variety of investments that are known to generate cash flow. Some of them include:
- Mortgage notes
- Dividend-paying stocks
- Small businesses
- Single-family rental homes
- Multi-family properties
- Commercial properties
Let’s talk REITs for a minute.
What Are REITs?
The acronym REIT stands for “Real Estate Investment Trust.” REITs come in both private and public forms. REITs are unique in that they must pay investors 90% of their income. They also have limits on the controlling interest percentage that any one investor may own.
Essentially, you can think of an REIT as a company that pools together money so that they may manage and distribute real estate profits. You receive regular dividends while the company does everything for you.
One of the best ways to evaluate REITs and stocks that are out there is with an EFT (Exchange Traded Fund).
Exchange Trade Funds employ exports who make evaluations and automatically invest for you.
REIT vs. Crowdfunding
Crowdfunding platforms are plentiful, though they typically require investors to be accredited. This means that you must perform your due diligence and screen all of the sponsors, opportunities, and operators, without any help. Plus, Crowdfunding involves a high number of legalities as well.
REITs, on the other hand, are regulated. They do, however, provide all of the extra work for you. Anybody can invest in an REIT and it’ll typically take someone no more than an hour to get set up.
Cash Flowing Your Investments
Open an Investment Account
The first thing that you’ll want to do is open up an investment account so that you can keep your investment funds separate from all of your other funds. You can either do this using an IRA, an LLC, or a stock brokerage account.
Invest In Real Estate That Is Cash Flowing
Use your investment funds wisely. Invest in real estate that is known to turn cash each year. This cash flow may come from dividends, rents, or other types of rights.
Keep It Flowing With Reinvestments
Unless you’re getting ready to retire, why not continue to reinvest? When you reinvest your dividends back into more cash flowing real estate investments, you bulk up your portfolio, nest egg, and cash flow!
Achieving Cash Flow Isn’t Difficult
If you’re ready to start investing to take a step closer to the lifestyle you’ve always wanted, the time is now. Make sure to get in touch with us here at National Cash Offer if you have any other questions regarding real estate investing.