Cashflow Investing

September 20, 2012 — Leave a comment

Cashflow Investing is what we are all about.  Specifically we are about investing in income producing assets where we control the investment & decisions which allows us to beat the system.

Most people invest in cashflow by giving their money to the system, by purchasing annuities, mutual funds, bonds and other investment products that produce cashflow.  The problem though is that you have very little control.  You may own a portion of the asset but you do not have control over the investment or decisions that actually affect the cashflow that asset produces.  As a result you do receive cashflow for your contribution but as you see in the diagram you receive the smallest portion of money back.

We are talking about a different type of cashflow investing.

We invest in cashflow where we control the asset/investment, meaning we have control over the investment, processes and decisions that affect the cashflow the asset produces.

This is a fundamental difference in how one invests.

We don’t turn our money over to the “pros” or “brokers” (the system).  Instead, we invest our own money and other people’s money (by raising funds) in assets that give us more control over how the asset performs.

When we invest our own money, we actually side step system and it looks like this.

When we raise money and invest other people’s money it looks like this