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Updated over 5 years ago, 07/11/2019
3 Kinds of Cash to Build Your Kingdom
Money is an obvious requirement in order to live and pay the bills. Without money, working for a wage is a necessary task. Unless someone is a full-time investor, it is likely that the burden of monthly expenses are limiting that individual from quitting your job and embarking on self-employment. This is called the cash we need now!
Having cash monthly will give an individual more freedom. This freedom will give that individual the power to do what he or she desires, whenever he or she wishes. Stopping a Cash Now as well as a Cash Monthly income is not advisable. However, the prospect of a Cash Later source of income is something that takes care of itself, while the Cash Now and Cash Monthly works for the immediate needs.
This source of revenue comes when an individuals elects to sell, interchange, or refinance properties at a later date. Withholding properties is an appreciating asset. Not only is it appreciating every month, but leasing tenants are paying off the property’s monthly mortgage. Therefore, an individual can invest in a property as a lucrative, cash-generating asset with nearly no monthly costs and flip/sell the property to generate a sizable cash payout.
If one is looking to generate a lot of Cash Monthly, It is advisable that he or she may want to ensure that the property cash inflow continues. In order to do so, he or she may want refinance to get cash out, but never 100% of the invested cash. Withdrawing on 100% will only lead to problems. It is advisable that an individual withdraws approximately 75% of the cash, thereby leaving 25% property equity. Doing this will offset problems in a possible market downturn. Moreover, withdrawing on 75% of the equity will still permit a positive cash flow.
Following these guidelines will help individuals increase their net worth because they will have increased equity in their properties.
The proceeds from your properties, or what you put in, has three main purposes for your portfolio.
Key Points:
- Cash Later happens when you sell properties somewhere in the future.
- Cash Later allows you to gain more from equity which you can gain a lot from.
- The more doors you have on your property, meaning an apartment complex, the more money you will gain.
Can you see how your kingdom is being created? Can you see how it can be created in a short time?
Cash isn’t just a general pool of funds. If you think of the financial assets you have available in three different terms, it helps you prepare and structure your investing operation to be more efficient. Don’t just dump it all into one category; divide the cash you have on hand, what’s coming in, and what will come in, into separate pools and plan based on that.
See the original at: https://thinkrealty.com/3-kinds-cash-build-kingdom/