Covering Your Monthly Cash Flow
by Mike King
As business owners and Real Estate Investors, our
greatest concern on a daily basis is covering our monthly personal and business
income requirements. Unfortunately, far too many Investors don’t realize this
until it’s too late! For this reason alone, most investors are not in Real
Estate Investing very long because they are hoping to bag the BIG ONE. For most
of us, the big one doesn’t come until after we’ve been investing for a while.
Last December, I was attending an event in
Florida where I met a woman that was stressing out because of not having enough
cash flow. She told me she had 6 properties that she was controlling through
Lease Options. The backend payments, or her cash-out amounts, were all
substantial. However, she told me her first cash-out wouldn’t happen for at
least another six months. Her problem, as she began to tell me, was that she was
close to filing Chapter 7 because of her lack of income to cover her car and
mortgage payments. So, was her problem an issue of too much debt? Absolutely
Not! Her problem was that her business model didn’t allow for consistent monthly
injections of cash. And unless the cash injections are consistent, you can’t
count on them to cover your bills.
Predictable cash flow is why most people will
never be self-employed. Most people need to see their paycheck from their
employer every week or every month. They want the false sense of security that
comes with being an employee. But shouldn’t we, as self-employed business
owners, want, and even expect, the same when it comes to getting paid? Now you
can control your Cash Flow more by incorporating Forbearances into your business
model.
Most people in Foreclosure don’t want to lose
their home and they don’t want to sell you their home either. So, if you’re
currently marketing to the pre-foreclosure market and you aren’t trying to help
the homeowners keep their home, then you are throwing away a TON of money every
month. And that’s money that you can use to help cover all of your personal and
business needs! Besides, when you help people save their homes, many of them
still won’t be able to keep it for one reason or another and as a result, you’ll
get even more short sales. In other words, by helping people keep their homes
from Foreclosure, you can make more money, get more short sales and help cover
your monthly Cash Flow needs.
This article was provided by Mike King of
Fresh Start Property Solutions. Mike King and partner Steve Telford have
been a customer of ours for a long time and I believe that they know more about
negotiating and making money with Forbearance Agreements than anyone out there.
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