Real Estate Cash Flow Made Easy
Cash Flow defined and simplified
Mortgage cash flow refers to the cash inflows and outflows associated with a mortgage loan. It represents the movement of money between the borrower and the lender over the life of the mortgage.
For the lender, mortgage cash flow primarily consists of the monthly mortgage payments received from the borrower. The lender earns income through the interest charged on the loan and may also collect fees such as late fees or delinquent payments.
Analyzing mortgage cash flow is important for both borrowers and lenders. Borrowers need to understand their monthly obligations and ensure they have sufficient income to cover the mortgage payments. Lenders assess mortgage cash flow to evaluate the borrower’s ability to repay the loan and determine the risk associated with lending.
Key Concepts
User Testimonial
- "Becoming the Bank" collecting payments from Borrowers
- Earn Interest income
- Passive Income - "mailbox money"
- Seller Financing to qualified Buyers
- Dodd-Frank compliance
I became ‘the bank’ on a rental house that I sold. The borrowers had rented for 3 years, perfect pay history and had saved over the time period a substantial down payments.
Borrowers were grateful for the opportunity of home ownership, keeping their children in the same school district, and getting to know their neighbors better.
Win-win for everyone!
