Cash flow is almost always crucial to the failure of many real estate investing projects. By their very nature the types of assets that you are likely to encounter in this sort of business are relatively less liquid than other assets. In this instance we take liquidity to mean the ease with which that asset can be turned into cash. Cash is needed for a variety of reasons including paying wages and buying raw materials.

If you do not have cash then the business functions can fall and you may end up being forced to sell your assets or close the business altogether.

A Proverbial Struggle
Sometimes your tenants will fail to pay rent or they might even refuse to pay as it is. You are then faced with a situation whereby you are constantly looking for the money to even pursue them in court. Where you really pile on the pressure, the tenant might agree to pay in installments. While this will generally work for them it does not take into account the fact that you need to carry your business as they trudge along in their installment plans.

The estates manager goes to places that you are unable to reach ?!
Delegation has to be part and parcel of your real estate investing business unless you are superman or superwoman such that you are able to be in all places at the same time. Delegation has always been a normal part of business practice because it was recognized that the investor or senior manager will have to be given the time and space to be able to think strategically.

You do not want to put them into all the little details that are the mundane existence of real estate investing. Rather you use their considerable talents in more strategic roles that can significantly increase your general profitability. Those investors who insist on managing their own real estate are likely to fail or become so exhausted that they lose all their effectiveness.