KLE 101: Real Cashflow, Fake Cashflow – Part IV
This is the fourth – and, final – installment of this KLE on the three types of Positive Cashflow Real Estate:
1. Tax Cashflow
2. Fake Cashflow
3. Real Cashflow
After introducing Tax Cashflow “cleverly designed to make Negatively Geared real-estate look like a good deal”) we spoke about manipulating the amount of deposit that you put into a property to ‘force’ it to produce a kind of ‘Fake’ Positive Cashflow.
This kind of cashflow comes at the expense of: (a) cash – you are typically forced to put in a lot – and, (b) returns: typically, the more cash you put into an investment, the lower its return.
So, what is the secret?
Simple, it’s to look for a property that produces …
Real Cashflow
For some unknown/stupid reason, investors tend to look at property exactly the wrong way around:
They let the bank and public opinion of the day tell them how much capital (i.e. deposit) to put in; then they look for the greatest tax benefits; then …
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Remember: if you can’t find one now, you ain’t looking hard enough