Posts Tagged ‘Bank’
The Real Estate Business: 3. Advantages of The Promoter If You Have a Permanent Cash-flow for Carrying Out The Work
When we mentioned before the parameters that define an investment property, we have defined the return on investment through cash flows: Collections and payments – versus – revenues and costs. We assume set the conceptual differences between the components of cash flows (receipts and payments) and benefits (revenues minus costs). A good ongoing management control, allow the developer to obtain the expected benefits. Obviously the developer to start a promotion must have a working capital, enough slack, which enables it to undertake the new project and perfectly suit the parameters of the investment through cash flow, at least those relating to solar and other costs as detailed . Our feedback system of cash contributions by the investors, will allow the developer to make the real estate investment project, knowing that the funds needed to build are deposited in the Bank, which guarantees operation, can dispose of them as specifying what will work in the various stages of implementation. Read the rest of this entry »