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John S.
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$3.5M in liquid cash, what is my best approach?

John S.
Pro Member
Posted Nov 19 2022, 21:40

So to keep things quick and simple, I currently own 2 finance companies which have provided me with approximately $3.5M in LIQUID CASH as of the time of this post.

Given that we are entering and many suggest, currently, in a recession, I saw the writing on the walls and decided to "cash out" in early August 2022. Considering the state of my competitors who have "held on", I made the right decision. I hated the work anyway, as I was working 80-90+ hour weeks for the past 4 years, and it literally robbed me of my happiness.

ANYWAY.. I have about $3.5M in my savings right now. I want to 100% transition from my previous field into real estate investing (with a complete focus in multifamily rental property investing).

I know that in the next 6-18 months, we should be seeing a 20%+ reduction in prices.

I always thought highly of the BRRRR method (in the sense of practice only, since I have never had to execute this myself), but given the interest rates, if you personally had $3.5M in liquid cash, with the intention on going "all-in" on multi-family rental properties for buy and hold strategy...

Would you:

1. Buy all multi-family properties CASH and straight cash flow (to avoid the high interest rates)

or

2. Buy all multi-family properties via mortgage w/20% down payment + deal w/the terrible interest rates, and hope to eventually be able to refinance at a lower late?

I would love any advice or input this community can provide me! Thank you all in advance!!


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