Does anyone know of BP podcasts about investing in RE with 100% down or close to it? Thanks!
I have heard BP podcasts where people used cash to buy a home and then refinanced using BRRRR to get their money back to continue investing. I've also heard BP podcasts where people bought extremely low priced properties with all cash (under $50,000). A lot of that occurred after the recession or in very rough markets, or extremely rural markets.
Now if you are talking a normal market, and an investor who is not already independently wealthy from some other business and has a ton of cash to spend, I imagine the podcast episode would sound like this:
Host - Tell me how you got started.
Guest - I saved up cash until I had enough for my first investment. It took me 5 years of saving every extra penny until I had enough, then I bought a single family home using all cash.
Host - What are you doing now?
Guest - Waiting another 5 years to save up enough for house #2..........
@Zach Beth Buying for cash won't make for a good podcast and hence, you hardly hear about this. As Anthony pointed out most of these "I bought for cash deals" were either bought after the recessions, are complete dogs and/or both.
You can remain conservative and put a high downpayment (35-50%) while still availing the benefits of tax writeoffs through getting financing. Honestly, with a 50% downpayment you would've survive the 2008 crisis (in most areas).
@Anthony Gayden I plan on investing $150k per year in multiplexes. Im sure it won't take me 5 years to find a good deal.
@Omar Khan Whats wrong with buying and holding? Im sure if I had real estate paid off I could survive the 2008 crisis without a problem? Why wouldn't I? Just wait 5-10 years until most areas recovered and don't sell. Just keep taking in the rent without paying a mortgage? If there weren't any renters what would I have to pay? Taxes?
I guess I wasn't asking opinions. I understand leverage. Just wondering if there are any Podcasts that have people talking about this topic. Thanks
@Zach Beth No harm in buying and holding. But that doesn't make for a "sexy" topic on a podcast. Most folks are looking for a sizzle. Providing "boring" advice (but accurate and higher quality) doesn't bring extra eyeballs to your content.
Also, in the age of 10X'g everything, prudent, conservative investors are looked down upon ;)
@Zach Beth
It won’t take 5 years, but it will mean waiting a full year to buy one property and that is very slow growth.
There are many reasons I dislike investing with only cash, and it seems to me the biggest is because the return on investment is much lower than when I use leverage.