Welcome To Cashflow Hot!
Positive Cash Flow Property
This type of property is one that pays for itself. Once you have made your initial investment, you shouldn't need to keep dipping into your pocket every month just to cover expenses.
The properties that we look at on this website are cash flow positive, even after accounting for monthly upkeep expenses and so on. We look for yields to the investor of around 15% or more.
Property Research
One of the most critical phases of investing in a property is the research. It takes significant amounts of time in researching a property. We use a top-down approach to investing in an area:
- How is the region performing?
- Are there sustainable jobs in the area?
- Are there social or environmental hazards?
- Are there potential tenants who are willing to lease the property?
- Is there a good return for the investor?
- Why would a tenant want to stay?
- Is there potential for growth?
- What is the exit strategy and when?
Getting Started
The first step before investing in real-estate is to set aside a few hundred dollars a week for investing but to do that, you need a balanced budget. Click here to download an eBook on automating your budget. (...more...)
Other ways to get your seed capital might be a line of credit from your home or in some circumstances a personal loan. Irrespective of that, you must balance your budget first, before investing.
We are looking for investors who have at least $20,000 available and we cater for investors up to $4,000,000 in funds available to invest. (...more...)
What Investors Should Know
Recently an investor was asking me whether the income from a certain property that he had bought would go up or down. He was stunned when I said that it was irrelevant whether or not that property income was going up or down. The question I wanted to know, was could he afford to lose if the income of the property went down.
It is never a good idea to invest more in any single investment opportunity than you can afford to lose. You see a person with a well distributed portfolio might be able to afford for the income of a property to go down, because they expect it to bounce back, wheras a highly leveraged investor may not be able to sustain a loss of cash flow.
Investment risk is personal. The riskiest form of investing is emotional investing, where your decisions are based on feelings, not logic. We all have to use some intuition, as this type of thinking fills in the blanks when there is imperfect information available to make a decision but intuition should only be a secondary source of decision-making. (more...)