Every business knows that cash flow makes the business or breaks it. It doesn't matter that a business owns substantial assets - or is owed money...if it can't pay its suppliers and staff when it needs to then eventually it will go bust.

Simple as that.

And to pay its overheads a business needs money coming in all the time; minimally enough to cover all expenses. It also needs a vision of where it is going, or all that money in and out just isn't worth the hassle.

When you build a property portfolio, using finance, the same principles apply.

If you can't keep up the mortgage payments on your property or properties (which should be your biggest outgoing), the lender will take them away from you and you will be a credit pariah for the foreseeable.