How to Make More Money: 3 Cash Flow Strategies
How can you make more money? Well, today, we’re going to explore 3 cash flow strategies that will make your wallet very happy.
First of all, when most of real estate investors think about real estate investing, they think cash flow!
But here’s the thing.
Everyone has a different definition of cash flow.
For example, what cash flow means to John might differ from what it means to Jane. And what Jane values might drastically differ from what Jack values.
Of course, even if their cash flow goals differ, there are a few similarities between John, Jane, and Jack. Those similarities include:
- Using the BRRRR method
- Buying discounted properties
- Making money (obviously!)
Now, while John, Jane, and Jack might share a few similarities in the real estate world, they also share many differences, especially when it comes to generating positive cash flow.
What kind of differences are we talking about?
Well, let’s take a look at their 3 individual real estate methods:
- Less Money Down: John likes to focus on leverage. He wants to limit his initial outflow so he can keep more money in his pocket. This strategy tends to work best for him and other investors who want to break even every month with their tax write offs.
- Making monthly income: This cash flow strategy is probably most popular, because it’s all about making money every month. Jane, who likes to take this approach, doesn’t mind putting some money down at closing. She also has a reason for wanting to generate consistent income each month. For example, she might need it to supplement her current income, replacing a full-time job, going on a big vacation every summer, or another reason.
- Refinancing: While some investors want to see money flowing into their bank account every month, others, like Jack, prefer to wait 2 to 3 years to refinance—or whenever there’s a movement in equity. When equity rises, Jack likes to get his money out of a property to use for his life and/or to buy more value-add properties.
As you can see, cash flow comes in all shapes and sizes.
- John focuses on less money down.
- Jane focuses on monthly income.
- Jack focuses on refinancing.
Is one real estate method better than the other? Absolutely not. All 3 are valid cash flow strategies. It just depends on which one works best for you and the lifestyle you want.
So, what’s your strategy?
Our team is here to discuss your options, create a personal strategy, and set you on the path to making the kind of money you need.