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?

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