Someone says they are cash flow investor is that same thing as they are a passive income investor?

Good question.

No, they are not the same thing. If someone is a cash flow investor they are looking for deals that already have cash flow. This type of statement is normally used by someone that is an active investor. When you hear someone saying they are a cash flow investor it often means that they are looking for deals that have existing cash flow where the cash flow does not have to be created from scratch like in a startup company.

But many of these cash flow investors are not passive investors. They might be doing a series of rollup acquisitions where they are purchasing multiple companies or real estate assets in a particular category.

Being a passive investor means the investor has mailbox money or automatic deposit money coming in where they are not working. If the investor stops working and the passive income stops coming in that is not a good passive income investment.

If you were to purchase bonds or a limited partnership interest in a large multifamily community where you are not involved in the management this would be an example of a passive income investment.

But if you are a cash flow investor that works many hours per day looking to roll up veterinary clinics that have a minimum of 500,000 in cash flow per year, you are not capturing passive income. However, if you invested into a fund as a limited partner or passive shareholder that engaged in this activity then this activity for you would be a passive investment as long as someone else is doing the work.

If your goal is passive income the best way is to look at the bonds of companies that are not publicly traded (as they often pay higher returns) or to look at investing as a limited partner in a multifamily apartment community.

If you would like to learn more about investing for passive income, just register for my free weekly training at the link below:

https://www.meetup.com/benjamin-z-millers-investor-networking-group/

I hope that helps and good luck with your investing!

Benjamin Z Miller
www.benjaminzmiller.com

Benjamin Z Miller
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www.benjaminzmiller.com

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