Make Sure Your Fort Lauderdale Real Estate Investment Cash Flows
Do you remember who Rod Tidwell was? He was Cuba Gooding’s character in the movie Jerry Maguire who uttered the now famous line to Tom Cruise, “Show Me Da Money”. Is your investment property showing you the money?
With the resale market so bad…or as some in the business think..many investors are buying bank owned properties in the Fort Lauderdale real estate market and are prospecting for other deals that have positive cash flow.
Many investors that I know are in a “buy and hold” strategy right now. Yet even in a buy and hold strategy, they still want me to show them the money. If I am still going to be their agent, like Rod Tidwell demands, then I better be sure to bring them deals that make them money.
Positive cash flow means that after the payment of all expenses, there is still money left over. For instance if you buy an investment property and rent it out as for $1,000.00 per month and all of your expenses on the property each month come to $800.00, then you would have $200.00 in positive cash flow.
Positive cash flow is the mother’s milk of the successful Fort Lauderdale real estate investor. Imagine just the opposite. Imagine only having rent of $800.00 per month and expenses of $1,000.00 per month. In that instance you would have $200.00 per month negative cash flow.
In the former example you are making a profit and in the latter you are losing money. When my investors are looking for deals in the Fort Lauderdale real estate market, I need to be able to calculate net cash flow and provide them with an analysis as to the viability of a target property. As you might imagine, they are all looking for positive cash flow. Who wants to lose money every month?
Do you know how to determine the cashflow on a target property? Well if you don’t, I have a handy tool that will help you. All you have to do is plug the variable numbers in and it will figure out the cashflow on a property for you.
Actually the calculator above can help an investor determine how much of an offer they would like to make based upon the input of certain financial information and what their expected rate of return is.
Give it a shot, it’s pretty self -explanatory. If you have any questions drop me an email or submit the form below. I hope you find this as useful as I do.
Fort Lauderdale Investment Property
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