To cash flow in real estate, you could purchase a single-family house and, instead of fixing it up and selling it, you rent it out. Every month you collect the rent and pay the expenses, including the mortgage. If you bought it at a good price and manage the property well, you will receive a profit or positive cash flow. The cash-flow investor is not as concerned as the capital-gains investor whether the markets are up one day or down the next. The cash-flow investor is looking at long-term trends and is not affected by short-term market ups and downs. Financial literacy allows you to not fear money matters, and to see the real value of money. True wealth goes way beyond and is measured by more than cash. Success in life is more than financial success. Cash flows from investing activities provide an account of cash used in the purchase of non-current assets–or long-term assets– that will deliver value in the future. Before analyzing the different types of positive and negative cash flows from investing activities, it's important to review where a company's investment activity falls within its financial statements. There are three main financial statements: the balance sheet, income statement, and cash flow statement. The balance sheet provides an overview of a company's assets, liabilities, and owner's equity as of a specific date. The income statement provides an overview of company revenues and expenses during a period. The cash flow statement bridges the gap between the income statement and the balance sheet by showing how much cash is generated or spent on operating, investing, and financing activities for a specific period (Kenton, 2022). Successful entrepreneurs see opportunities where others don’t. Throughout history, the rich often made their money by building successful businesses and then holding and accelerating that wealth through real estate investments. While everyone else is panicking and worried about a market crash, you’ll see entrepreneurs and real estate investors excited and ready to find some deals. This is a great time to be looking for real estate
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