Why You May Consider Investment in Zero Cash Flow Properties
In commercial real estate investing, the prevailing wisdom is to focus on net cash flow-that is, structuring the purchase of a property with the right combination of debt and equity so the property is cash flow positive. For many investors, this tried and true approach is the best option. However, it’s not the only option; in fact, there are certain situations in which zero cash flow investments, or “zeroes,” may be a more appealing structure.
It may seem counterintuitive to invest in something that does not produce a net positive cash flow, but it may make sense given the right situation. Below is an exploration of the various circumstances that might lend themselves to zero cash flow deals, and a look at why this strategy could be worthy of investment consideration. (περισσότερα…)