REÍ Cash - paid in full

7 Replies

How would one advise how to go about purchasing and growing portfolio by cash only purchases. Is it worth going through salesperson class to learn the laws. Or just keep reading and listen to podcast to learn how to identify and select REIs?

I know the most often used strategy is to utilize other people’s money... I’d prefer to not go that route.

@Joe Villeneuve

I subscribe to the wisdom to avoid debt. It’s a tool. Yes, I could leverage into multiple properties but there is high risk associated with that.

I use to have over $133,000 of student loan debt. After paying that down and off... no desire to be back in it again. Currently on pace to pay off our primary in Dec 2021. After that, no plans to use debt again.

I know that means I’ll build a portfolio slower.

@Joe Villeneuve I used to pay cash before back in the days when the market was down for it was affordable . A 100k can buy 4 to 8 properties depending on the condition and location. Those days are long gone , the same money today will only buy 1 maybe 2 for a dump unit, at least on the market I was playing , just outside the Atlanta perimeter.

If you have cash , you can buy the first one doing the Brrrr method which you can read more here in BP. This will catapult your investment to the next level.

If you pay cash and get burned you lost all your capital and only 20% if doing a loan.

Originally posted by @Dante Feria :

@Joe Villeneuve I used to pay cash before back in the days when the market was down for it was affordable . A 100k can buy 4 to 8 properties depending on the condition and location. Those days are long gone , the same money today will only buy 1 maybe 2 for a dump unit, at least on the market I was playing , just outside the Atlanta perimeter.

If you have cash , you can buy the first one doing the Brrrr method which you can read more here in BP. This will catapult your investment to the next level.

If you pay cash and get burned you lost all your capital and only 20% if doing a loan.

Correct. This is an understanding of risk...that too many REI don't understand because they think of REI the same way as buying their own home. They are not the same...in any way...and the debt associated with them, also is not the same.