This has everything to do with velocity of
returns. If you have swallowed the cash flow dream, you may be
watching the cents while they steal the dollars.
All wealth comes from rapid capital gains. To
be clear, a capital gain is a certain type of money that comes
when you purchase an asset like a house, boat or car for one price
and sell it for a higher price quickly (or not)
I listen to the peddlers of paper financial
products talking about establishing cash flow and it is humourous
to me to say the least.
Fast wealth, rapid fortune comes when we
purchase assets for a low price and ad value or improve in some
way and resell quickly for a profit, a capital gain. Its so simple
its almost child like. However, these professionals often work
very hard in their job. We can't blame them for not knowing this.
If you can buy and sell a house for a rapid
capital gain of $20,000 for example. You risked say $10,000 giving
you a return of 200% so the return is excellent. If you bought the
same house, and had a cash flow strategy, you may see returns of
10 maybe 20% from the rent roll minus costs.
The
Big Capital Gain or The Meagre Cash Flow Avenue?