Alex explained that in his community building a successful venture that
generated nice cash flows — not IPOs — were the big win.
This is a big advantage of income properties — home buyers who buy cashflow negative properties with leverage and rely on appreciation to generate returns (which is why a lot of investors consider this speculating) can be devastated if the market takes a downturn, but properties that
generate a nice cash flow every month aren't affected.
Not exact matches
Since being leveraged involves making monthly interest payments to someone, it is really
nice if your investment is one that
generates periodic
cash - flow for you because it will help you to make your interest payments.
UPS
generates a ton of
cash which they use to pay out a
nice dividend and to regularly buy back shares.
For most investors, the most attractive real estate trusts tend to be those that pay you a
nice distribution, but that don't pay out more
cash than they're
generating.