Tuesday, February 6, 2007
Zero cash flow?
Some investors need no cash flow. Why? Normally because they have very good cashflow from other investments and need some tax sheltering. There are many investments out there, especially in high-quality single tenant NNNs such as CVS drug stores that are structured specifically for this purpose. Current financing is in place at the maximum amount so that the income from the property exactly pays the mortgage. What this also provides is extreme leverage. Most of these deals average around 15% downpayment. Who do you know that needs some tax sheltering? Hmmm?