Building Cash Flow Without Cash

The economy today is somewhat stagnant. This is especially true with the Real Estate Housing market. As we are aware there are several factors which have contributed to this current situation, e.g. sub-prime mortgage collapse, government intervention, overbuilding, etc., we don’t really need to discuss how we got to where we are, because we are here. So now we need to address how we, in the Real Estate business, or those who would like to be in the Real Estate business, are going to react and respond to this current situation.

Anytime there is a major action that takes place, there is a reaction. Anytime there is a major action in the Real Estate market that is bad for many, it creates good opportunities for others. For example; in the early 2000′s the Housing market was booming. New construction everywhere demanded land to build on; therefore, owners who had land in the right places received premium prices for their land.

Investors who bought houses in the late 1980′s and early 1990′s sold these homes during the boom for huge profits. Now things have reversed again and we are back to the late 1980′s situation. OK, so enough of the history lesson, except to say that people who become involved in Real Estate would be well advised to consider the past when planning for future.

So, here we are today. Many people who own Real Estate are in trouble. The Real Estate is not in trouble, the owners are in trouble. Real Estate does not have problems, the owners of Real Estate have problems. Therefore, if a person wants to find and take advantage of the current market, that person needs to become a Problem Solver.

In this series of articles pertaining to “Building Cash Flow Without Cash”, I am going to direct my ideas and comments to people who would like to get involved in investing in Real Estate but are short on cash or borrowing power with which to purchase property. Believe it or not, opportunities abound out there for people who have the desire and a little ingenuity, and are not afraid of a little work.

I am going to give you some real Live case histories to prove my point. Some of these will be from my personal experiences and others from previous clients or various other people whom I have come to know in 40 years of experience in the wonderful business called Real Estate.

I’m not so much going to tell you about the great profits of the people involved in my stories, as I am about how they got started by generating positive Cash Flow which allowed them to have living money while making their investments. In order to do any business, a person needs operating or “Living” money; therefore, that will be the thrust of these articles.

The biggest hurdle in any project is getting started. If we can get that round boulder sitting on top of the hill, moving just a little bit, it will generate tremendous momentum going down that hill.

Now, I’m going to give a title to these subsequent articles pertaining to the specific technique that was used in that situation to create Cash Flow; however, remember what I said about problem solving. Most of these techniques worked because the investor solved a problem for someone, usually the property owner.

These posts are the opinion of the author who is not engaged in rendering legal, accounting, or investment advice. If such advice is required or desired, the services of competent professional persons should be sought.