I'm pretty new to real estate investing and i need some advise on where to start if i was to start investing with cash. What are my pro's and con's? My plan is buying a home less than 300,000 in order to flip it and buy more eventually. What should i be aware of? My main question is where to find the homes and what to look for? What are different possibilities for in investing with cash?
First off good for you for wanting to get started in real estate. I like using cash to buy houses because there are no payments every month while I am fixing it up and while its on the market for sale. The downside to using cash is if you don't know the market good or if you underestimate your repair costs then its all your cash at risk. I have used banks,private lenders, and cash to buy houses so I wouldn't say any one way is better than the other its just a matter of your comfort level. As far as finding homes I would start to network with local real estate agents and call any we buy houses signs in your area to find wholesalers. Have the Realtors run comps for you on anything you are interested in so you know what you can sell it for and find a couple good handymen to go look at the houses with you to give you an estimate for repairs. Hope this helps good luck!
Cash is great...but....you have to know your market. Before you jump in....learn your market and the innuendos of your deal. If you want to, send me a PM. John
@Sabrina G. Oh and one more thing Real Estate Agents will take you more seriously if your a cash buyer too.
Hi all thanks for all the supportive responses!!!
I have been studying the in's and out's into investing with real estate but haven't understood every little process that comes along with it quite yet. Along the line their are questions that are coming up and this forum is a great place to have people I can connect with when I need advice. I will keep you all posted
Sabrina it's great that you have cash.
You might want to start small to limit your overall risk to your net worth and liquidity.
For example if you are inexperienced and are sitting on 1 million dollars you do not want to go buying a 500k property to turn around. That would be a 50% capital risk.
So starting smaller when you have no experience can help to weather storms when mistakes are made.
I buy in cash, it take longer to build my portfolio up but it's what I prefer. Good luck :)
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