And people worry about cashflow.

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From 07/11/2006

A short thought tonight. I understand as an investment educator the need for people to manage their cashflow. I also understand that ultimately we are all looking for passive income. However I believe also that the real money in property is in capital growth and we need to focus on that to really get financially free.

I met a couple tonight who reminded me of this. They purchased a property on the North Shore for 1.5 Million. They then spent about 1 million renovating it. Yes they had the financial depth to do it but we can all afford something. Their current valuation after reno-ing. 7 million dollars!! That’s a gain of 5.5 million dollars in less than a year.

Your first deal might give you 20K but this is still much easier to make than earn. So thought for the day. Learn to manage your cashflow while you generate equity. This equation will produce real results.