Negative cash flow is a situation where the expenses during a given period are higher than revenues, during the same period. Negative cash flow does not necessarily mean a loss, although chronic mismatch could indicate either ineffective credit management, fraud or actual loss. In real estate, negative cash flow means an investor is putting more money into a property than they are getting out of it, resulting in a net loss of money.<\/p>\n
<\/p>\n","protected":false},"author":3,"template":"","meta":[],"class_list":["post-3074","encyclopedia","type-encyclopedia","status-publish","hentry"],"acf":{"custom_title":"What is negative cash flow?","why_important":"
If a real estate investor is in a period of negative cash flow, they will need to spend more than they earning. This can occur even when the\u00a0investor is earning an overall profit on the real estate investment.<\/p>\n","examples_of":"