Investor · San Diego, CA · Member since 2017 · 28 posts · 11 votes
Are you stockpiling cash right now?
Do you believe investment properties will go "on sale" in the next year?
If so, where are you keeping your cash (or cash equivalent)?
A saving account just feels lame. I'm looking for options that are nearly as liquid but have better returns. Any suggestions come to mind? Or maybe that's why they call it *dry* powder....
Real Estate Broker · 3412 S. Harlem Avenue Riverside, IL 60546 · Member since 2015 · 6k+ posts · 5k+ votes
5y
@Brent Blum I think everyone waiting for the big sale on real estate in 2021 is about to be very disappointed... At least here in Chicago the low inventory for investment properties doesn't look like it is going away, and interest rates are just so low. The other thing is that foreclosures in a lot of states will take years to come through, and they haven't even started yet. I just presented at a meetup yesterday and we talked about this. Foreclosures take a minimum of 12 months in Illinois, and that means 2021 will have zero new ones caused by the pandemic.
As for dry powder, I think the best place to keep your cash is in the bank. I keep cash reserves and every experienced investor should as well. When you need cash, you need cash! I also keep a HELOC though which is useful in some instances if you see a great deal.