Is Positive Cash Flow The Right Investment Strategy For You?
Is investing in positive cash flow properties the right strategy for you or is something else more suited to you?
Positive cash flow properties generate passive income that can be used to reinvest to grow your cash flow even further or it can be spent on your lifestyle.
One of the key things to ask yourself when searching for the right investment strategy is “What are my financial goals?”
Positive cash flow properties tend to be great for people seeking financial freedom and the ability to do what they want with their time.
They generally aren’t suited for people wanting to build large amounts of wealth relatively quickly. If you’re an active investor and are proactively doing things to improve the value of a property (eg. Renovations, developments, subdivisions etc) then chances are you can make more money faster that way than through positive cash flow.
Positive cash flow properties are great for people who value their time and lifestyle. They want to be financially free but probably don’t want to spend their lives developing properties in order to do that.
When done correctly positive cash flow properties can be low-risk investments.
They key is do your research and identify good suburbs with the potential for growth (for help with this see my course Advanced Suburb Research) and then find positive cash flow properties within those suburbs.
Positive cash flow properties can be lower risk as you can still make money, in the form of passive income, even if the market is going backwards and your property is losing value. This allows you to weather more storms and continue making money even through the down cycles of the property market (which do happen).
If you want to invest in positive cash flow properties then you’ll likely need to find the properties yourself.
You need to have a willingness to research different areas, talk to multiple real estate agents, scour the real estate websites and look for opportunities than standard investors don’t see.
See the problem is most of the companies out there offering some form of positive cash flow properties are selling s*#% covered in glitter. They sell it as an opportunity but more often than not the properties are overpriced and in bad areas.
This means if you want to invest in positive cash flow properties you should stay away from people offering you opportunities that seem too good to be true (because they are) and be willing to find your own opportunities.
Don’t Worry About What People Think
When investing in positive cash flow properties a myriad of people will come out of the wood work with well meaning advice on why the way you are investing is wrong.
Some of the reasons will actually be valid also.
Investing in positive cash flow properties isn’t common and it can be tricky to do it right. For this reason having thick skin and not caring about the advice of others can be really important.
Either that or just staying quiet and not telling anyone what you’re doing.
It All Boils Down To
I believe it all boils down to whether or not you are happy with a strategic plan that will take time until you achieve success.
From my experience almost everyone wants a winning lottery ticket. That ticket probably comes in the form of a negatively geared property that is on the cusp of huge growth.
See if you invest in negatively geared property hoping for growth and it doesn’t happen then you can blame the market. It wasn’t your fault, the market just hasn’t moved…yet.
It’s not to dissimilar from buying a lotto ticket hoping you win. When you don’t win it’s not your fault you aren’t rich…your numbers just haven’t come up yet.
Positive cash flow properties (in my opinion) are for the people that say f*#% the lotto I’m going to make my own luck. They put their head down and buy a solid positive cash flow property in a good area.
If the property goes up in value then great, but if it doesn’t you just continue working away saving money and buying more properties until you have enough passive income to be financially free.
Is that you?
Are you someone who wants to achieve financial freedom and is willing to take full responsibility to make it happen?
If so then positive cash flow properties are likely going to be a great investment strategy for you.
Funnily enough it’s also a great investment strategy for people who want to take it slow and just buy properties here and there as they feel like it. There is no pressure as the properties pay for themselves so you can just take your time to build up your portfolio.
If you think positive cash flow property is the right investment strategy for you then I suggest the following next steps.
#1 Read 0-130 Properties in 3.5 Years
This book had a huge impact on me and will solidify in your mind why positive cash flow properties can be so good as well as your next steps for buying one.
#2 Join the On Property Members Area
Not required but this will fast track your ability to find positive cash flow properties. Inside the members area are courses on how to find positive cash flow properties as well as how to research an area.
Plus you’ll recieve a new positive cash flow property listing ever single day so you can see whats on the market today and exactly where the positive cash flow properties are.
I hope to have you as a customer.
Until next time,