1. Money

Cash Flow Before Taxes in Real Estate Investment

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Definition: When analyzing a property to determine its value for purchase, the tax returns are one thing to look at, but cash flow is more important. Cash flow is the flow of money through a business, in and out. It is all the money, without regard to deductibility for tax purposes. Thus, a tax return may show losses, while actual cash flow might show profits, or vice versa.

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