In this video we discuss the pros and cons of investing for cash flow vs investing for capital gains.
Every intelligent investor has 2 long-term investment strategies that he or she can implement.
1. Invest for Cash Flow
2. Invest for Capital Gains
Let's break down both Cash Flow investing and Capital Gains investing.
Cash Flow Investing:
You are purchasing an asset hoping to get consistent, predictable income from it.
The goal of investing for cash flow is to build wealth steadily, and reinvest it over time to create more wealth.
Examples: 1. Dividend stocks 2. Income producing real estate 3. A promissory note
Who this is best for? People who want to become financially free or save for retirement.
If done correctly, you can become financially free with just a few cash flowing assets.
Capital Gains Investing:
"Buy low, sell high." The goal is to acquire something for $X and Sell it higher for $Y. The difference is your capital gain.
Examples: 1. Flipping a car 2. Buying a stock low and selling high 3. Flipping a house
Who is this best for? People who with a nose for a deal (Craigslist etc.), or ability to find under-performing assets (value investor), or the ability to force appreciation (real estate developer).
Depending on your asset type, you can make a big profit in little time.
RESOURCES MENTIONED IN THIS VIDEO:
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Instrumental Produced By Chuki:
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ABOUT ME 👇
My mission is to provide my viewers with actionable content that enables them to create financial wealth. My videos are a reflection of my real-world experience as a real estate investor, stock market investor, student of finance, and entrepreneur.
This channel allows me to share my passion for personal finance, stock market investing, real estate investing, and entrepreneurship. I produce content that I would want to watch, and because of that, I give 100% effort in every video that I make. I also believe in complete transparency and open communication with my audience.
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DISCLAIMER: I am not a financial adviser. These videos are for educational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. I am merely sharing my opinion with no guarantee of gains or losses on investments.
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