(For example, you take out a loan from the bank to purchase a new rental property that produces a positive cash flow. Although it is someone else?s money, like the banks, it still creates a positive revenue stream.) Positive debt expense is a positive cash flow that puts cash into your pocket. Negative debt expense is a negative cash flow that takes money out of your pocket.
Do what you can to reduce your negative debt. Analyze your assessed debt expenses and evaluate how you can reduce or eliminate the negative debt repayment expense. Often, when you reduce other budgeted expense categories, you are able to apply the difference between the assessed amount and the budgeted amount to your negative debt.
Finally, review all other expense categories and make appropriate adjustments.
SUCCESS STORY
Emily never believed she could start investing in real estate because of her poor credit. One day, she found out that her friend Debbie was making a lot of money investing in real estate despite her bad credit history.
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