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Updated about 10 years ago on . Most recent reply
Where to Invest these days?
Most Popular Reply
![Matt R.'s profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/173005/1621421484-avatar-mattr27.jpg?twic=v1/output=image/cover=128x128&v=2)
Cash flow/dividend sidebar:
In stocks they call it dividend chasing which is pretty close to cash flow chasing in rei. There might be a stock that produces 10% dividends, at one time radio shack was paying 20%! This usually indicates there is a fundamental value flaw in the asset. The cash flow is high because the value of the stock/rei is so low. When this happens the asset could be on a on a longterm path to zero value. It happens in both stocks and rei. The high cash flows can be an indication of this future value loss issue. Some investors are ok with this but most experienced investors don't play that way as it eventually erodes overall wealth.
Radio Shack is 80 cents now and pays zero dividend. Many cash flow homes ended up about the same as Radio Shack. Thanks, matt