Realtor · Nashville, TN · Member since 2018 · 4 posts · 0 votes
Hello everyone,
I am new to this website and I have been researching and reading and listening to so many books and podcasts. It is time to take action. I am a local realtor in Nashville, TN. I plan on investing in the multifamily niche. I have enough equity in my home to purchase multiple properties at the right price and I have enough saved cash to purchase a property outright as well. What I am confused with is which one do I use to fund my first deal? Should I go conventional or purchase all cash? Any information that can be provided will be appreciated.
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
7y
@Rashaun Davis use your cash carefully, and always have an exit plan for your cash. In most cases, if you can get a great deal you should be able to refinance most/all of your cash out of the project within a year or two. I have used this strategy on a four unit in Lyons, IL, which was my first deal, and I am doing it now on several apartment buildings in the Berwyn, IL market. Focus on the return off capital first, and then make sure you get a return on capital second.
Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
7y
@Rashaun Davis of the 300,000 BP members, you are going to get 300,000 different answers with everyone telling you their way is THE way.
The reality is, none of the above mentioned avenues that you mentioned are bad ways of getting started. It all depends on your personal investing goals.
I personally, would buy all cash on properties I can get for around 80% ARV and then immediately refinance out as much as I possibly can. That is just ONE of the many strategies to use.