Maximize benefit of being cash rich

4 Replies

Hello Everyone:

I am new to BP but am loving the culture that I am encountering.

My question is what strategies would you employ if you had 300k of cash to invest?

Background: I own and operate a successful business with good cash flow, I have roughly 20 hours a week to spend on investing and good to great credit. I live in Buenos Aires and as such can not visit properties or have face-to-faces with seller or loan officers, etc...

My thought until now has been to leverage my cash acquiring conventional financing on four SFRs. However, I keep reading how difficult it can be -- especially for a first-time investor -- to find a DEAL so I do not want to start with a strategy that is dependent on finding several of them a year.

Perhaps is would be easier to secure a great DEAL offering an entire cash purchase?

Looking forward to your responses.

Why can't you visit properties or lenders in Buenos Aires?

It is easier to get a deal with all cash. You can buy properties in disrepair that a bank would not finance. Also, people in a desperate situation might be willing to sell for a lower price to somebody who can pay quickly. You can still finance the property later once you have it all rehabbed.

@Brant Richardson I'm sorry I wasn't clear, I am looking to invest in the US.

Thanks for the tips. How does refinancing a home that I own outright work? Is that like taking out a line of credit?

Jonny, personally, from my perspective, I would look at being a hard money lender ( and let some servicing company take care of the loan for you) instead because in my opinion, it's quite a big risk to find good deals and purchase sight unseen, unless you want to take the time and effort to fly up to the US.

After a 6-12 month seasoning period banks will finance it based on the appraised value of the property. It will be normal mortgage with the terms that you negotiate.

A "good deal" is all relative. I'm sure many of the people on Bigger Pockets would not consider the properties I have bought for a second, but to me they are a good deal.

There are many "Turnkey" companies which buy properties, rehab them, place a tenant in them, get them set up with a property management company and then sell them. You will not get these properties below the market price but they are all ready to go in a nice package for foreign investors. If you do a search for "turnkey" on this website you will see a lot of controversy and the pros and cons of going this route. Most of the time I am against turnkey but for investing from another country it makes sense.

Is real estate that bad in Argentina? Just looking to diversify out of the country?

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.