Getting into a real estate investment

2 Replies

I am starting a new path for my financial future and freedom and I am stuck.  How do I know if its better to pay cash for a property or put only 20% down and purchase multiple properties?   I still have a full time job to focus on as well.

Welcome @Account Closed

Congrats on your new path for financial freedom! You always have options so don't feel stuck. 

The question depends on many things:

  • If you have "Gods Money" then cash is king. Answer this, is it better to have debt or no debt? (A real estate individual in my area sits on a few hundred million dollars, he can afford to pay cash for all properties, and he gets great deals because of it) 
  • If you're like us normal people (net worth not in the multi millions, yet;) you want to leverage your money. So your second option would be "better" if you want the most return for you capital. You will want to have a higher tolerance for debt because you made a promise to pay someone back so if someone doesn't pay rent you are still responsible. 

But before we get into all that, let me ask: 

  • Do you have a primary residence? (If not, a good way to get started is house hacking)
  • Do you know what you want yet? Is it a certain number of properties that cash flow 1-200 a month? (Identify this and it will help guide you)
  • Have you been listening to the podcasts and reading books? (Knowledge is power, and there is plenty of POWER here!)

Best of luck Brian!

Thanks for the insight.  I do own my home and I will be using a trust acct to purchase properties. I have begun to listen to podcasts and am starting to read the books.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.