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.

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