We have just built the home of our dreams -- and own it mortgage free (click here for a Tour). We did it by applying creative real estate financing principles based on understanding the value cash flows.

Whether you ever wish to go into the creative real estate financing and cash flow business, you need to know how to manage cash flow paper to your advantage.

First, let me give you my elevator briefing on valuing cash flows -- a stream of income from some securable financial instrument -- normally a real state mortgage/trust secured by real property.

Properly structured/secured notes have cash value. For example, a primary (senior) real estate note can be sold (normally through a broker) in the national market for a nominal fee. What generally is not know is that secondary (junior) notes also can be sold easily in the private marketplace.

Suppose I own an investment property and need cash (for whatever, perhaps to make another investment). One way to obtain it would be to create a junior trust on the property and sell it -- and the associated cash flow -- to an investor (or sell the property outright with such financing).  I now can sell the notes to get the cash I seek.

There are many investors with cash looking for opportunities to purchase such notes. You simply have to ensure that the yield is sufficient.*  Knowing how to do this opens the door to the world of creative financing and incredible opportunities for creating wealth and even the home of your dreams.

Here are just a few of our cash flows based creative financing over the years:

• Rent-purchase and subsequent sale of the historic Spring Garden property in Alexandria, Virginia (click here for more info)
• Purchase and sale of multiple real estate investment properties (several in the high teens mortgage interest rates era)
• Purchase and sale (to a mortgage banker) of our former residence in downtown Charleston, South Carolina
• Construction financing of our present home.**

Russ Dalbey has put all the information you need to know about cash flows into a course that costs much less than my wife and I invested over 20 years ago. Russ has taken that information and packaged it in a way that you can apply the principles right away and start building your own wealth. Just click here. I've been through all these materials and can vouch, from my own experience, that the techniques work.

*The formula for calculating yield (or profit) is easy to understand. Your profit divided by your investment equals yield. $6000 (cash flow) returned on a $100,000 investment equals a 6 per cent yield. And, if I purchased this $6000 cash flow (and $100,000 note) for $90,000 then my yield would be $6,000 + $10,000 (from note payoff) divided by $90,000 for a 17.77 per cent yield.*Calculating yield for even the most complex transactions now is very easy using financial calculating programs such as T-Value.

** Click here if you would like to find out more about how we did these things and the sure success principles we used in our real estate investments (and I taught in my very popular real estate investment seminar).

Go to Best Business Online overview page from cash flows.