What is your strategy right now?

Question

I have always considered myself a long term buy and hold RE investor, however, in the last few years I sold off all of my properties because I was given some attractive opportunities to sell (Dallas-Fort Worth market).  Now I kind of wish I had not because I've been sitting on the sidelines waiting for opportunities to buy.  Hindsight is 20/20.  Anyways I am trying to decide if I just go out and buy some more properties (minimal return on cash) or do I try to dip my toe in hard money lending while I wait for property values to drop to get better deals.  Hard money lending sounds a little scary unless it's someone I know personally with a proven track record.

Franco Montano · Answer

@Desiree Markle I'm exactly in the same situation thinking if I should pursue some deals with hard money while I sit on my cash waiting for better opportunities just in case the market turns.

I would love to hear what other investors think but I'm thinking about pursuing high cash flow areas like Tampa, Memphis, Cleveland, etc. and using hard money to BRRR. I've never invested out of state yet so I'm pursuing this for the first time. I'm in the CA market which is great for flips but not so much for rentals. I'm not going to get aggressive on deal flow (I'm a bit conservative of an investor) I'll use my cash as a safety net just in case and if I'm able to get a deal fully refinanced to complete BRRR the cash flow should be more than enough to weather a drop in rental rates if that were to happen. I would also have a cash buffer to weather the storm and pick up deals if the lending market were to freeze.

Rich Rodman · Answer

The first thing I think about before buying/selling is opportunity cost. I believe the solution to opportunity cost is to increase velocity. The more transactions (while obviously doing good work) you can get through, the more often your capital is working for you.