Is positive cash flow the right strategy for you?

What is a positive cash flow property?

Unlike a negative cash flow property, a positive cash flow property is an investment that earns more than it costs to own. For example, if your rental apartment brings in $36,000 a year in income with yearly expenses, maintenance costs, and principal and interest payments of $12,000, your positive cash flow would be $24,000 a year.

A positive cash flow property earns more than it costs to own.

Positive cash flow on a property typically occurs when rents are high and interest rates are low, or after you’ve owned a property long enough that you’ve made a significant dent in your principal.

Positive cash flow on a property typically occurs when rents are high and interest rates are low.

One strategy many investors use is to buy a positive cash flow property to help offset the losses from a negative cash flow property. However, bear in mind that you must pay taxes on any profits you make, although these can be minimised by the property’s eligible deductions and potentially any loss on the negative cash flow property.

When could positive cash flow be right for you?

When deciding if a positive cash flow property is right for you, it’s important to look at your investment objectives as well as the availability of properties in your desired areas. Sometimes positive cash flow properties are hard to find, and may be located in areas of high rental demand but lower growth than negative cash flow properties – for example, housing developments near specialised industries such as mining.

Pros

• Positive cash flow properties can offer lower prices, stamp duty and taxes.
• Positive cash flow can be used to pay down your principal, for renovations or for investment in other properties.
• Positive cash flow from your property can supplement your income and help build up your portfolio faster.

Positive cash flow can help build up your portfolio.

Cons

• You must pay taxes on any profit generated.
• May be more volatile due to being located in less economically stable areas.
• Positive cash flow properties may be perceived as having less capital gains potential.

As with any investment, there are pros and cons associated with a positive cash flow property. While earning a profit from day one is a key benefit, positive cash flow properties may not have the same growth potential as negative cash flow properties.

Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Six Ways to Increase the Cashflow on a Rental Property

Here are six suggestions to increase the cashflow on a rental property:

1. Increasing Rents

It might seem obvious but a lot of times tenants haven’t had an increase in their rent in quite awhile. If the tenants are paying under market rents, you might have the option of raising their rents. Of course, if you’re in a province with rent controls, or the rent has already been increased recently, this might not be an option.
Even if you can do it, keep in mind that a large increase may cause them to move out, or just be unhappy tenants that damage your property.

2. Add Income from Other Sources

Things like adding storage, parking and even selling advertising space can be used to increase rents, add a new rental stream or just reduce expenses. We have a few coaching clients who put solar panels on the home for an additional income source as well. Sometimes a little creativity goes a long way.

3. Pay Less for the Property

One of the conditions we put on every offer is that the deal is subject to an inspection. This means the vendor has to give us access to the property within a reasonable amount of time to complete an inspection.
What that inspection reveals can be used as leverage to reduce the purchase price. Basically, if the inspector comes back and tells you that the roof needs replacing or that the wiring is outdated, you can go back to the vendor and ask for a price reduction because of the work you are going to have to do. Sometimes the vendor will offer to get the work done, but our preference would ALWAYS be to get it done ourselves.
Think about it—the vendor could hire their Uncle Joe to do the roof. If it starts leaking in six months, they aren’t living there anymore. But, if you get the roof replaced and it starts leaking you can chase down the company that did it and get it fixed.
As long as what comes back from the inspector is not something that makes you want to walk away from the deal, then you can use it to reduce the purchase price. Of course, if you’re in a hot market, opening the deal back up because of something that came up on the inspection may not be a wise move. You could lose the deal to someone who is happy to pay what you’re paying, even with the issues.

4. Reduce Other Expenses

Your biggest cost relates to your financing. Spend the time to research your options and find the best financing options available to you. Lower rate and longer amortization periods will increase the cashflow. Beyond that, simple things that reduce maintenance costs or energy costs if you pay them will all save you money over the long term. While you likely won’t be able to charge the utilities to your tenants if they are not currently paying for them (as per their Lease), when their lease comes due or you place new tenants, put in your Lease Agreement that the tenant(s) is responsible for heat and hydro/electricity. You may have to drop your rent a tiny bit to do this, but then you no longer have to worry about expensive heating costs in the winter as your tenants will have to pay!

5. Put Up a Larger Down Payment

It’s not always an easy solution for many investors, but one of the options to boost your cashflow is to increase the amount of money you put down because it reduces your financing costs. High ratio mortgages also have a lot of additional fees associated with them, so getting out of that category saves a lot of money each month right from the start.

6. Allow Pets

I know I know, pets can cause damage and problems and pee on your new carpet. Yes, it can cost you. I discussed my take on whether you should make your rental pet friendly right here. But, if you are very selective about who your tenants are and you include in your Lease Agreement that they are responsible for keeping the premises inside and outside of your rental unit in good condition, then this is a great way to increase rent and/or cashflow.
MOST apartment buildings don’t allow pets (or they restrict the size of pet) and only a small percentage of Landlord’s out there allow pets. So, how does that help you increase your cashflow? Because you are providing a service (allowing pets) that is in great demand and tenants with pets are generally willing to pay more to keep their loyal companions with them!

Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Does Buying a Rental as an Investment Make Sense?

Q. Since so many people have lost their homes to foreclosures and can't get credit, I expect that it's a good time to buy a rental investment place. But I'm also worried that property prices may fall further. Do you think this would be a wise way to spend my money?


A. It all depends. If you're able to obtain a property that's deeply discounted from its current market value, can achieve positive cash flow and can handle the out-of-pocket expenses that inevitably arise when you're a landlord, then it could be a good deal.

But first ask yourself these questions: Do you mind panicked calls at 3 a.m. to deal with stopped-up showers or heat pumps that are on the fritz? Do you have a cushion of cash to tide you over during vacant periods and cover costs like advertising and vetting tenants? Can you afford to put down a hefty down payment to obtain financing? And do you plan to own for a few years so you can benefit from the boost in equity you'll get as you pay down the mortgage, even if it takes a while for home prices to rise again?
If the answer to all of these questions is yes, then you can go shopping. Ask the current owners for copies of all rental receipts, as well as all bills, including utilities, water and sewer, property management and taxes.
Then you'll have to do some figuring so you can compare the income potential of your targeted properties.
First, for each property, take annual rental income and deduct the average vacancy rate for your area, which in Chicago was 9.5% in the fourth quarter of 2010, according to the U.S. Census Bureau. Then deduct all of the operating expenses; this will give you your net operating income or NOI.
Once you get this figure, you can divide it by the purchase price to get the capitalization, or cap, rate. This is a useful figure to have when you're comparing properties, since those with higher cap rates will bring you better returns.
You'll also want to calculate the cash flow by deducting your annual mortgage payment from your NOI.
From that you can calculate the cash-on-cash return for the first year of ownership. Figure out your cash outlay by adding up closing costs, down payment and any expenses for necessary maintenance that was not done by the former owner. Divide your cash flow by your cash outlay and you'll have your cash-on-cash return, which is expressed as a percentage.
This figure can help you decide which property is the most lucrative, and also to compare the yield of a property with that of other kinds of investments, like Treasuries and stocks.

Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Five Ways Investing in Real Estate Can Save You Money

According to Brad Hettich, President and CEO of Commercial Lending X, there are several ways to save money fast, but chief among them is investing in real estate. "You should dip into your savings or take out a loan that you can repay, and always invest long-term," explains Hettich. "Real estate is a great example of that." Brad's logic is that with so many available properties that accommodate any budget, real estate is among the most effective ways to save money.

However, it is vital that if you cannot purchase property in cash, that you find a lender that specializes in your financial needs and price range. "With a stable income and a set amount of income put aside every month, you have the advantage of not only determining your own budget, but in deciding how much you want to pay for property," explained Hettich. Companies like Commercial Lending X work directly with local banks that were burned in the mortgage crisis, making it easier for them to provide both commercial and residential loans to consumers.
"Because we work with both consumers and banks, we stress five reasons why real estate investment will save you money in the long run," Hettich explained. "Lower taxes, positive cash flow, use leverage, equity growth, and the benefits of inflation."
1. Lower Taxes
There are several tax incentives for real estate investors, with deductions for property that can often be used to offset wage income. These tax breaks for real estate investment often allow property owners to turn a loss into a profit from all the money they save from deductions. These deductions can include any actual costs involved in financing, managing and operating the property, to include maintenance, repairs, property management fees, travel, advertising, and utilities. However, other great ways to save money on tax rates include government-instrumented deductions:

• Depreciation: Property depreciates in value over time, enabling you to deduct some of the home's costs.
• Interest: All mortgage payment interest is deductible.
• Insurance: Premiums for any type of insurance are deductible.

2. Positive Cash Flow
When it comes to real estate investment, there are two ways to save money: pre-tax and after-tax positive cash flow. A pre-tax positive cash flow is when income received is greater than expenses, and an after-tax positive cash flow is when your expenses are more than your collected income, but the tax breaks bring you back in the black. Either way, real estate investment, if budgeted properly, can save you money and earn a nice profit along the way.
3. Use Leverage
According to Hettich, "Never spend a dime on your real estate investment unless you have to, because the only way to make money is to have money." Leverage is an important aspect of saving money through real estate investment because a real estate investor uses leverage to increase their assets without spending their own money. "Using your leverage to gain a large amount of equity is the difference between the actual worth of the property and the balanced owed on the mortgage."
Companies like Brad's help real estate investors secure loans where they can use the bank's money to purchase property and increase its equity without spending a dime of their own money. "Our goal is the same as any real estate investor: create value with as little expense as possible."
4. Equity Growth
The best way to save money, and earn money, is to build up equity for real estate investments. That way, with high equity you are able to save on your mortgage while earning a nice chunk of profit. As Hettich puts it, "Don't be afraid to sell and invest in something new once you've reached your equity goal. Just as long as you have the financial leeway to do it."
5. The Benefits of Inflation
When investing in real estate, a great way to identify potential savings is by researching the inflation rates for the area. "As commodities increase in value, so does the price of your home," Hettich explained, "which means that over time you reduce the amount you have to spend to maintain the property."
Generally speaking, inflation can help you save money on your real estate investment because as rent increases, your mortgage costs will remain static, which means you will save money on maintenance costs with the increased cash flow from the rent.
Ultimately though, despite the fact that these are five great ways to save money through real estate investment, they do come with their risks as well. According to Hettich, "Any time you convert cash into an asset, it becomes more difficult to get your money back. But that's the risk you take in investing because not only can you save for retirement with a regular cash flow, the reduced taxes will ensure its long-term viability to save you money."


Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Smart Investing - A Tale of Two Townhomes

At the height of the real estate boom, some people purchased rental homes without looking at whether the rental income was enough to cover all the expenses — including the mortgage — and provide positive cash flows to the investor.

Going forward, investors should first be concerned about making sure that the properties they buy pay for themselves. For example, if one invests $35,000 in cash equity to buy a $125,000 property, they should buy what gives them positive cash flows and more importantly a positive cash-on-cash return on their money.
Beware, because many properties, even with today’s lower prices, do not pay for themselves. In these cases the owners end up taking money out of their bank accounts on a monthly basis to cover the negative cash flow properties they have purchased.
Covering negative cash flow from your other savings is not a good investment strategy. Here’s why – look at these two townhomes. One in a moderately priced area of San Diego and one is a fancy luxury townhome:
The first property “moderately priced” property pencils out a nice positive 7.03 percent cash-on-cash return on my money.
Although the rent is higher on the second “fancier” townhome property, it has significantly negative cash flows on operations of $8,400 per year. That person is investing $137,500 of cash equity to still be negative on operations, or an investment return of negative 6.11 percent.
And going forward, the chart below estimates that this property will be negative on cash flows for over 10 years.  Not only are you investing an $137,500 down payment, but continue to add to negative cash flows for over a decade. You will have over $192,995 into this property before the property begins to make money.
The question you should ask yourself is, “Why didn’t I just buy a cash flow positive property?” like the moderately priced townhome?
This is just one example and you need to put the property specifics into your analysis, do some research on realistic rents, area vacancies and expenses to make your own decision.
Just realize, that in general, prize properties are no prize. It’s the moderately priced properties with decent rents compared to the purchase prices that have positive cash flows and are the real prize.


Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

How to Begin Investing in Real Estate

An unusually long and harsh winter is delaying the start of the spring housing market, but for the investment-minded, continued low interest rates and high demand for rentals appear to outline an opportunity.
Institutional investors and their buckets of cash have dominated many markets for the past several years, according to real estate data cruncher CoreLogic. But at the end of 2014, cash sales declined to a national average of 36.1 percent, down from 38.8 percent in November 2013. CoreLogic also reported that the foreclosure inventory declined 34 percent at the end of 2014. That means individual investors are starting to have a shot at lower-priced properties ripe for fixing up and renting, real estate professionals say.
If you are thinking of tiptoeing into real estate as an investment, you have two basic approaches, says Leonard Baron, a lecturer at San Diego State University and author of several self-published guides to investing in real estate.

Buying shares in a real estate investment trust. You can invest in a REIT, but doing so involves buying shares of a portfolio of properties. “It’s really more like buying a stock or buying into a fund,” Baron says. “It’s a completely different animal from owning real estate directly.”

“There are three layers of value – the real estate itself, the management and cash flow that supports the trust, and the fund based on the trust,” explains Gary Gastineau, founder of ETFConsultants.com, based in Bonita Springs, Florida. “It’s a very different vehicle than buying real estate, but most of us can’t just go out and buy 1 percent of a skyscraper."

 

Adding a REIT to your portfolio can complement stock and bond funds, Gastineau says, but you must be sure you understand how the real estate fund is designed and how its managers will likely extract value from the holdings. You can buy shares of REITs and real estate-based funds, but the performance of the funds is based on both cash flow and gains from occasionally selling properties – a very different scenario from the typical performance drivers of stock and bond funds. 

Direct ownership. This is anything but a passive investment, Baron says. “People think it’s easy money, that there’s not a lot of work, that tenants will pay on time and that pipes never leak,” he says.
Some individuals enter the market by buying a small apartment building, he explains. You should research diligently to find a good deal on a building that produces positive cash flow and has no hidden defects that will require expensive repairs. Don’t take investment guidance from a real estate agent, Baron warns. To them, everything is a good investment, because they only win a commission when you buy.
Don’t assume your personal experience as a homeowner translates to managing rentals, just on a bigger scale, he adds. From complying with fair housing rental regulations to insurance, to making sure the property complies with building codes and common-sense safety guidelines, property management dominates your wallet and your time. “It’s a very complicated asset. But because it’s a physical asset, people think it isn’t complicated,” Baron says. “People way underestimate the number of issues that come up.”
One way to test your tolerance for being a landlord is to buy a duplex or a small apartment building, with the aim of living in one unit and renting the others.
A nascent rebound seems to be buoyed by millennials who are edging into the market as owner-occupants. Thin on cash, 20-somethings are finding they can gain a toehold into homeownership by buying a small, multiunit property, such as a duplex or three-apartment building. Their plan is to live in one unit and rent out the others, says John Mosey, president and CEO of Northstar MLS, a Saint Paul, Minnesota-based data service for real estate brokers.
Although this arrangement can stretch down payment dollars, it also demands a Himalayan learning curve: first-time homeownership simultaneous with first-time landlord.
The most important consideration for potential first-time landlords is to not assume today’s rising rental rates will lift future cash flow, Mosey says. Today’s tight rental market will be eased as projects under construction enter the market. That means rents will level off, so it’s best to work cash flow and return numbers using conservative projections, Mosey says.
Key cash-flow factors include not only predictable costs, such as property taxes, but also variables that can affect the appeal of the units to potential renters. For example, Mosey says, you may think including heat and water in the monthly rent will attract renters. But the actual cost of heat and water is quite different for a single occupant compared with a unit shared by three roommates. The more water and heat they use, the less money you keep.

Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Rental Properties: They Could Be Your Cash Flow Machine

After the real estate bubble burst in 2007, and property values in most areas of the country collapsed, many investors soured on real estate. But rental markets remained strong, thanks to all those people who needed places to live after they had given their homes back to the banks. In some areas, you were able to buy solid properties at prices from the 1960s while rents stayed at their modern prices or even went higher.

Most of these properties had strong positive cash flow, which made them solid deals just based on the rent-to-value ratio. Imagine buying homes in the suburbs of Detroit for $25,000 to $35,000 while renting them out for $850 per month. You could also buy homes or condominiums in Florida, Arizona, Nevada and Texas for prices not seen in decades. It was a bonanza if you had guts, access to cash and someone local to run the properties.

After several years of decline and stagnation, many areas of the country have experienced double-digit rebounds over the last few years, but there are still some great opportunities in to create your own cash flow machines. According to ABC News, the top five markets to own investment property are Detroit, Chicago, Houston, Minneapolis-St. Paul and Boston.

The rent-to-value ratio is king, in my opinion; the prospect of having nice appreciation in your resale value is strictly secondary. Remember, buying a rental property is about cash flow, not speculation about growth. To successfully invest in rental real estate, adhere to these rules:

• The three most important things in real estate are not location, location, location; they're cash flow, cash flow and profit. That location mantra? It's for homeowners raising families, not for investors.
• Location is still important because quality tenants will gravitate toward quality homes in solid blue-collar areas. Buy where the tenants you want, want to be.
• Buy properties only in areas where a significant percentage of the homes are owner-occupied.
• Make sure the property is in good repair and is clean to attract the best tenants. You (or your management company) pick the tenant. Quality tenants will fight over solid homes in nice areas.
• Complete background checks are mandatory -- not just credit checks. Just because someone has had a one-time financial bump that led to a foreclosure doesn't mean they won't be a solid tenant. Judge people by their overall background, not just by a credit score.
• Offer small discounts on the rent for timely payment and enforce late fees. Set the tone early and often. Be fair, but firm.
• Don't over-leverage your investments. Doing so puts your empire at risk of crumbling during the next real estate downturn. Many investors are paying cash in the less expensive markets (such as Detroit, Buffalo, Indianapolis) or putting large down payments on their investments in the more expensive markets. Leverage can be a great thing, but has been over-taught and overused. Use leverage wisely or not at all in your next round of investing

A lease with an option to buy can be a very effective strategy if the property is in a solid location. The rent you charge will be more a month, but a portion of it might go toward the credits on the purchase price for the tenant/buyer. In return for an option to buy the home and the credits, the tenant might agree to handle small repairs, thus relieving you (or your management company) of some of the upkeep duties.

There are still big opportunities out there for people who would like to invest in rental properties, but it will take education and a strong team to help you become a successful real estate investor.

Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE

Three Things That Make A Great Real Estate Investment

If you’re looking into real estate investments, you likely want to earn wealth on real estate based on risk you are taking, while minimizing the amount of time you need to spend attending to the property. In order to accomplish this, you need to make some smart choices upfront when buying investment property. Your goal should be to strive to get as close as possible on as many of these optimal scenarios as possible:

Pays a Fair Cash-on-Cash Return

When you buy property you are taking money out of your liquid financial assets – stocks, bonds, CDs – and investing it into a very illiquid asset – real estate. You were earning a rate of return on your financial assets, such as 4 percent or 6 percent, and you should strive to earn a fair cash-on-cash rate of return on your real estate. To do this, you need to pro forma your deals and buy cash flow-positive properties that earn you decent returns – not those prize properties that are negative, negative, negative. For more guidance on this, see Smart Investing – A Tale of Two Townhomes.

Isn’t Too Risky an Investment

All real estate is extremely high risk. Development of real estate, land, Tenant-In-Common (TIC) investments, private real estate funds, fixer uppers, etc., all have much higher risk profiles than just simply buying a nice established cash flow investment property. In many of those investments, you will never see a dime of your money again because there are just so many things that can go wrong! So if you want to own real estate, consider simply taking fee simple title in your own name – or an entity you wholly own – to the properties you purchase. In addition, you must do the proper due diligence, analyze, test, review reports, etc., to make a lower risk real estate decision.

Doesn’t Require a Lot of Time or Managing

Some properties just require way too much time and management to make them smart investments. Examples include vacation rentals, low quality properties in bad areas, college rentals, etc. Nice boring properties rented for as long as possible to decent credit profile tenants seem to take the least time to manage. In addition, treating your tenants fairly and with respect goes a long way towards keeping good relations with them; and reducing your hassles when there is an issue you need to address. And believe me — there will be issues!

Recommended by Forbes

It’s the nice, boring, wholly owned, in good shape, cash flow-positive properties that are the best investments. They are out there for your picking, but it’s not as simple as finding a property on the MLS and buying it.
You need to do some hard work, research, read up, and make smart, educated decisions to acquire the best real estate investments!


Elite Wealth Creators have been involved in the property and finance industry for over 20 years.  Our Investment Property Strategists deliver investment grade properties to the investment market and mediate between the developer and the investor. We also assist first home buyers in purchasing their first home in QLD through our house and land packages – this includes receiving $20,000 cash back towards their mortgage by buying one of our full turn-key packages.
Our service will take you through the complete process of buying positive cash flow property, including:
• educating you on positive cash flow and the ability to pay your mortgage off years in advance
• saving you thousands of dollars in interest
• supporting you in the decision on which property to buy
• assisting in the organizing of your finances, if required
• preparing you for settlement of contracts
• liaising with other professional advisers on your behalf if required.
Our Strategists specialise in delivering quality positive cash flow property and also helping investors pay off their mortgage years in advance

http://www.elitewealthcreators.com/
sales@elitewealthcreators.com
1800 GO ELITE