30 Aug Cash flow
Cash flow represents all cash receipts generated from any source.
When it comes to real estate, cash receipts can be made by renting or selling real estate.
When it comes to cash flow,a large number of people still do not know the essence and importance of it. For example, there are a large number of people who own real estate and have a passive relationship with it, that is, they do not earn any income from their real estate.
They think their real estate will be of use to their future generations.
This kind of thinking is not necessarily bad or wrong, but two questions arise here: the first is how much money is actually lost through all those years of waiting, and the second is how will future generations benefit from these properties? Well-being is achieved solely by putting the property into operation, which can be done immediately without any interim waiting period.
It is often said that owning real estate is better than keeping the money under the matress. Of course, it is better, but the true function of capital of whatever form is to create new, or added value, and only then can the owner benefit from it. The essence of capital is contained in the realization of CASH FLOW. Without cash flow, the capital is dead.
As long ago as the Bible we find a parable on the use of talents (high-denomination coins). The master gave his servants the talents to multiply them while he is gone. The hardworking and wise servants doubled the talents entrusted to them, but one timid servant buried his talent, and when the master came, he gave it back to him and said: “Master! I know you, you are a strict man. Therefore, I was afraid, so I went and buried your talent in the ground. Here, take what is yours!” Hearing this, the master said: “Oh wicked and lazy servant! You should have invested my money with the money-lenders and on my return, I would have taken it back with profit”. After that he ordered: “Take therefore the talent from him, and give it unto him who hasten talents. Indeed, whoever has will be given more, and he shall have an abundance. Whoever does not have, even what they have will be taken from them” (Mt 25: 14-30). What was applicable in ancient times is still true today. It is important to emphasize that everyone has the opportunity to multiply their “talents” and to achieve abundance. The only question is do we make wise decisions or “bury our treasure in the ground”? If we make a wise decision, we will be rewarded!