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April 22, 2009

Cash Flow

Cash flow is the after tax net profit of a business. As the saying goes, cash is king. For a real estate investor, cash flow can make their property investment career a success or a failure.

Negative cash flow means there are more expenses going out than money coming in on investments. If the negative cash flow continues for too long and causes an investor to use all their savings, their business can end in bankruptcy.

Real Estate Investing article on "Cash Flow"