I've had properties that are
great on a cash flow basis, but my real wins have been in markets that have appreciated well.
I'm by no means saying that multi units aren't
great on cash flow, I'm just saying that in most cases, not all, but in most, you'll need to spend quite a bit more on rehab.
Not exact matches
Although his definition wouldn't fly with most accountants, it makes
great management sense: «I base my
cash -
flow reports strictly
on aftertax profit numbers.
She predicts
greater profitability next year as it slows its spending
on original content and moves toward
cash flow positive territory.
If the sum of the expected
cash flow (
on a discounted basis) you'd be giving up for an equity investment are
greater than the costs of the debt, then you are better off getting debt.
We have made
great progress
on this in 2016, highlighted by our GAAP profit and positive free
cash flow in Q3.
Bringing
on a staffer or two can be a
great option if your
cash flow supports salaried or hourly workers.
I missed out
on great price appreciation in Seattle but also avoided the headache of negative
cash flow and laws unfriendly to landlords.
I realize that they still face many
great headwinds going forward but their distributions remain very safe based
on current
cash flow which is my main concern.
Whereas the
cash flow statement and balance sheet are still very important considerations in the High Yield Dividend Newsletter, we put put a
greater focus
on credit assessments and qualitative, subjective considerations given the riskier nature of such higher - yielding ideas, both with respect to income sustainability and subsequent valuation (share price risk).
Sure it's important to be able to navigate around a balance sheet,
cash flow statement and income statement, but the really
great investors spend their time reading, thinking, focusing
on the qualitative data and testing ideas.
What's interesting is that Buffett talks about See's as the most attractive type of business in this example, and certainly a business that produces steadily rising
cash flow on a very low capital base is a
great business.
They can also always rely
on their consumer products as a
great base for
cash flow.
Fundbox also provides advances
on unpaid invoices, so it's a
great option if you're looking to cover
cash flow gaps from your accounts receivable.
Running credit checks
on potential customers can be a
great way to protect your business from
cash flow problems that arise with doing business with customers who may be a poor credit risk.
These «boxes» offer
greater certainty
on future
cash flows for which one can derive a valuation for the company.
Looking at individual transactions is accompanied by easy - to - read
cash -
flow charts, which do a
great job of showing the
cash you have got
on hand and breaking down spending habits.
Small business credit cards are
great for
cash flow and daily working capital needs as you can avoid paying interest and earn rewards
on your purchases.
Whatever your investment of choice, unparalleled opportunity and
GREAT CASH FLOW are
on the horizon.
The shorting is a side bet
on a
greater question: will the company be able to produce free
cash flow adequate to justify the current stock price?
But to answer your question — very generally speaking — my ideal investment is a
great operating business that produces consistent free
cash flow and high returns
on capital that for some reason trades at 10x earnings or so.
To give a sense of that, we recently did a global screen of nearly 5,800 non-financial companies with market values
greater than $ 300 million, positive free
cash flow over the past 12 months, at least an 8 % return
on equity over the past 12 months, net debt to EBITDA of no more than 2.5 x and a trailing EV / EBIT multiple of no more than 8x.
This issue's focus is
on firms with possible «hidden» earnings, indicated by a record of positive free
cash flow that is currently
greater than earnings and that are trading with low price - to - free -
cash -
flow ratios.
A
cash flow - based retirement needs to focus
on the underlying
cash flows of what is being generated and it is highly dangerous to use today's pricing to sell,
great for buying.
The basic variables revolve around whether principal emphasis in an analysis should be
on operating earnings and
cash flows and / or whether principal emphasis should be
on looking at the company as an investment vehicle where
greatest weight is given to NAV.
Concentrating
on long - term growth in NAV ought to give OPMIs far
greater downside protection than would the conventional approach where the emphasis is
on predicting periodic future operating
cash flows or earnings (with earnings defined as creating wealth while consuming
cash).
Buffett limited himself to being the wholly - owned company's board, asking questions
on management competence, and redirecting free
cash flow for the
greater good of Berkshire Hathaway.
They can also always rely
on their consumer products as a
great base for
cash flow.
Next I assume the same interest expense
on the inherited structured finance (assuming they pay off the «bridge loan»), rounded up slightly, to $ 60 million, and capex at about 20 %
greater than depreciation just to be safe, and we get to
cash flow (CF) before taxes of about $ 120 million.
Bottom Line: If the
cash flow for your business can be unpredictable, and paying the full balance
on a credit card at the end of the month isn't always a guarantee, the Spark ® Extended Terms Card is a
great option.
* Recent homebuyers * Smaller home improvement loans (e.g., bathroom or kitchen as opposed to full remodel) * Borrowers in lower home value markets (if your home value has barely budged since you moved in, you may not have much equity to draw
on for a home equity loan) * Those who value ease and speed * Borrowers with
great credit and
cash flow
So having had a moment to thing it through, I would be extremely interested to take you up
on your offer just in terms of your feelings
on how to get a P / S multiple for a company... I'm sure all your readers are familiar with the various techniques you've shown us to get to an op margin to a price / sales ratio, perhaps sometimes you notice a wrinkle with op
cash flow trends that influences your thoughts, perhaps other things in other cases — all
great stuff that I come back to again and again to learn from.
The
great returns attracted huge
cash flows, and the longer the streak went
on the
greater the
flows.
You've done a
great job paying down debt, but with only a low interest rate mortgage and a short amortization, I think you can afford to focus
on investing with your extra
cash flow.
The One Percent Rule is
great way to keep from wasting time
on properties that won't yield positive
cash flow.
They believe the best measurement of «
great results» is high and consistent
cash flow return
on investment (CFROI).
The possibility of financial success and a
great return
on investment are not typically elements of a solicitor's opinion, but when legislation directly affects the value and
cash flow of a property, it is risky for the real estate bar to blithely assume that the impact of the statutory regime is beyond the scope of the purchase or mortgage retainer.
It can be tougher to get
cash flow on rentals in a hot market, but there are many markets in the U.S. that are still
great for rental property investing.
Cash flow on all of these is good, the last one
GREAT but by then I had the concept down.
In your scenario, I think I would take the longer term / amortization if I was able to or planned to use the extra
cash flow to invest in other properties / investments in the near term that will provide a return that is
greater than the interest being charged
on the mortgage.
Dori I would agree as well with what everyone is saying here -
greater CLE is unique by street and neighborhood and your appreciation rates will be ok but you may want to focus
on the
cash flow.
Place
greater emphasis in your investment portfolio
on the stable
cash flows of bond investments.
Understanding the risk The monthly bond repayments
on an investment property are undoubtedly the biggest expense property investors face, and the higher the interest rate charged
on the mortgage bond used to acquire a property, the higher the repayments and the
greater the impact
on the investor's
cash flow and return
on investment.
Still a Californian or newbie
on BP will be convinced it has
great cash flow and be the next bag holder unfortunately.
Besides looking in other markets, which I am doing, look at ways to add value so that you
cash flow (20 % down,
great deals, sub-meter units, petition tax assessments renovate, rent increase) and then make sure you have equity in your property when you sell to get paid
on the backside of your deal.
It also seems like it's so very important to get a
GREAT deal
on buying a property to have the opportunity to achieve the
cash flow.
This is a
great thing because of course we are all
on our own journey and set our own rules but it is also frustrating because if we are only having a quick conversation, we might think each other are crazy, me for having such a high requirement that I will never find a deal and you for being so risky with such little
cash flow.
In my area
great cash flowing rentals are easy to find
on the MLS.
Is there any sort of indices or characteristics that are used to be able to tell if a market is like yours («
great cash flowing rentals (that) are easy to find
on the MLS»)?
My biggest concerns are using FHA and how that hurts my
cash flow, using MLS and not finding
GREAT deals in my hot market and how quickly I can get out of the home to start making money
on my occupied unit (I understand with FHA the 1 year minimum).