Posted by Chenel Moore on March 17, 2001 at 11:17:04:
My net worth was over $200K. Sounds nice. When I had to liquidate my assets quickly, I walked away with only $100K. My cashflow per month, was negative for 4 months while trying to sell my assets.
Without getting into total specifics, the lesson learned, build cashflow first. I probably could have held out a little longer, if I didn’t have 4 months of negative cashflow. I could have used my monthly cashflow to offset my expenses I incurred while trying to sell my properties.
To me, net worth is a nice number Carleton Sheets uses to sell real estate courses (not that I am knocking Sheets) or a nice number we put on our loan apps. when applying for mortgages. But the reality check is that a thing is only worth what someone will actually pay you for it at that very moment. Plain and simple. In real estate we like to use fmv. But in reality, all fmv means to buyers is that we are asking $120K and they are offering $115K. Hey, it’s only 5K, right? Multiply that by 3 or 4 deals a month and the net worth of $20K per month dissapears very quickly.
So after being totally longwinded about this, I like how Kiyosaki puts it. Cashflow is king.