Buy now on loan or Buy later with cash?

7 Replies

So I am able to save around 7K/month. Most of that goes into stocks right now but I have decided to look at SFRs (I own a few duplexes). I only have about 10k in savings and was wondering if I should wait 3-4 months to purchase a 40k SFR cash or should I try to seek out private/hard money? (Conventional is out since I have less than stellar credit, around 690 due to a job loss in 2010 and getting behind on bills).

No issue on income, No issue on DTI, Just a less than stellar credit score. Thoughts?

You can go conforming all day with a 690 FICO and low DTI's.
Take a look at the Fannie eligibity matrix-
https://www.fanniemae.com/content/eligibility_information/eligibility-matrix.pdf

I would want an emergency fund of about 3-6 months of living expenses and then build up cash for investment whether that be real estate or something else.

It doesn't make sense to me to pay private or hard money rates to buy real estate with 6 to 10% cap rates + 3% inflation.

Wait a little while then make lots of money.

Good Luck.

Bill

Thanks guys. I do have money saved up, just in stocks that I can liquidate if necessary. Looks like I will just wait it out. 

What are you doing in the stock market?  The market is at an all time high at the lowest volatility in 20years.   I am shorting

@Justin Case  

I am getting out right now too. Hence my interest in properties however I just don't want 2-3. I want a lot more than that and was looking at financing. 

Don't get out take a short position. Real Estate is at all times as well why get in to RE?

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