Tuesday, January 17, 2017

Cash flow tips for Entrepreneurs

No one has money to spend, sales are down and the Christmas spending frenzy visa bill is coming in the mail. What can you do to increase your cash flow in tight times?

This article is excellent 7 cash flow resolutions for entrepreneurs in 2017

Real estate is different in that you can't upsell your rent once you're in a lease. Once popular add-ons, like the monthly pet fee, are exactly what causes tenants to move to cheaper places.

So keep expenses low. Keep good tenants even if it means a decrease in rent. It's better to not have to renovate AND drop rent to meet market prices.

Upkeep is crucial now as you can nip a bigger problem in the bud. For example I pay for all the tenant's furnace filters, it's much cheaper to spend $30 of prevention than $90 plus for a flame sensor that's dirty.

People will always need places to live and Edmonton is a vibrant city going through a rough patch...

 I heard the other day $60 is the new $90 regarding oil prices:

"On average, the well cost assumptions for these producers have fallen by almost 25%. At the same time, the expected recovery per well has climbed by a similar amount. In other words, on lower costs and improvements in extraction, producers in these three light oil plays are spending almost 40% less, on average, to recover a barrel of oil."

Let this be an example on how to run your properties, make do with less and when the economy bounces back you'll have increased your cash flow. 

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