Tuesday, March 24, 2020

Noah George - 3 Advantages You Gain When Investing In Cash Flow Property


Cash flow property advantages are truly hidden from the general public. Think about it. Have you ever sat down with a financial planner and wondered why he has never recommended that you take your money and invest in cash flow properties? Noah George means really many of the wealthiest people in the world have used cash flow property to literally build empires!

While you are pondering that question, think about this: cash flow property when compared to “traditional” investments peddled by many “financial planners” may provide higher returns with less risk and more control to you, as the investor.



Cash Flow: Is the amount of cash that an investment or business venture creates over a specified period of time. Since cash flow or cash is the primary driver of a business and gives business owners the freedom to create more products, services, or even pay dividends to shareholders, most analysts believe cash flow to be a company’s most highly regarded financial statistic.

Noah George is almost always takeover because the buyer knows that the cash can be used to help balance the costs of the purchase deal.

So, first and foremost, understand that there is a difference between investing and speculating. An investor will buy cash flow, while a speculator will bet on a rise in price or buying low with the hope of selling in the future at a higher price. In the investment property world, speculators are known as “flippers”. This is a topic for another discussion, yet just know there is a difference.

Advantage 1: When buying cashflow property, I am creating a recurring income stream. So, when I invest my cash in a property that I will in turn rent to a tenant, I am effectively being paid for having put my money at risk. The tenant will pay me to live there which creates my income for the property. Having income from the property gives me a steady stream of cash flowing to me which I am free to use.
Advantage 2: Buying a cashflow property creates an asset. What does that mean? It simply means that you now control or own something that pays you! The real difference between assets and liabilities is that assets pay you and liabilities require payment from you. Your personal residence is not an asset, it is a liability! It requires payment from you in the form of a mortgage. Even if your home is paid for, it requires payment from you in the form of taxes, insurance, and upkeep to name a few. In reality, your house is an asset for the bank that owns your mortgage or the state and federal government that collects your property tax, and the maintenance man who does your lawn… For you though, your home is a liability!



Advantage 3: Buying cash flow property creates tax advantages. That’s right. And, probably one of the most misunderstood tax advantages is that of depreciation or “phantom cash” as some call it. Basically, phantom cash (or depreciation) can be taken literally as just that, it is money that doesn’t exist. Depreciation is a government incentive and tax loophole of the rich so they can benefit from real estate to a greater extent.

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