Cash Flow is the money that a buisness makes a month right.

I was looking at a deal for 4.5 million te cash flow was 220 thousand a month profitwise.So is cashflow the money you make a month profit.Young enturpenuer.
In General Area - Asked by chris m. - Nov 4, 2008
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Jef C.
Broker/Agent
Lubbock, TX

Cash flow is the amount of profit, after expenses. Your example above was probably bringing in more than the $220,000/mo but after you subtract expenses, debt service, and reserves then you come out with its cash flow. Yes, this is your profit...aka your return on your investment.

Nov 4, 2008
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Ian J.
Broker/Agent
Ocala, FL

Chris, if you want to learn how to do it right take some classes offered by the CCIM Institute.

Nov 20, 2008
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Glen W.
Lender/Mortgage Broker
Atlanta, GA

Cash flow is revenue minus expenses. Cash flow is a very loose term and can be interepreted various ways (ie: before taxes, after taxes, including mortgage expenses). Make sure you understand what you are using the term cash flow in order to calculate. Below is a link to references that can assist in commercial property valuation (determiniation of NOI, etc...)

Dec 3, 2008
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