RPP – Cash Is King


Rand Partners Podcast – Cash is King

Key Information:

  • The 3 main bank accounts
    • Operating Expense
      • Day-to-Day Income and Expenses come through here
      • Determine baseline that stays in the account
    • Capital Account
      • Nonrecurring upgrades or capital replacements
      • Example: Creating a dog park, Replace Roof
      • Should raise that on the front but need to include amount set aside for the reserves
    • Draw Account
      • Excess cash above the baseline to the investors
    • Don’t get hung up on accounting reports
    • Cash Flow is the most important piece of information
      • Review the Bank Statement
        • Cash Inflows
        • Less Net Monthly Expenses
          • Cash Outflows
          • Remove Prior Month Draw
          • Remove Prior Month Capital Expense
        • Ending Cash Balance
          • Excess cash above the baseline is the draw for the investors

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