Advantages of Cash Flowing Assets

How many of your investments are currently paying you a monthly dividend while they continue to work and appreciate for you? If your answer was "Wait, investments like this exist?!" then let us introduce you to cash flow! In multi-family real estate investing, cash flow can be loosely defined as the net gains leftover after you pay all of your property's monthly expenses (mortgage, insurances, interest, taxes, operating expenses, etc...). Mailbox money is a term used to describe the physical check or electronic fund transfer that an owner receives monthly after their total expenses are subtracted from their property's operating income. Owners then have a variety of options including but not limited to reinvesting in their property, padding their operating account or realizing personal gains along the way! While it may sound like a tall task to cover all of these expenses monthly and still have profits leftover, at BCGK this formula is at the core of our underwriting process! 

Most new businesses don't make any money in their first year, generally taking 18-24 months to become profitable, while many fail completely long before profitability. Stock market and cryptocurrency investments can be wildly unpredictable. While we always recommend working with a financial advisor to map out the best plan for you, at BCGK we firmly believe that investing in properties that cash flow from day 1 is a strong foundation on which to build!