Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
Followed Discussions Followed Categories Followed People Followed Locations
Personal Finance
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 3 years ago on . Most recent reply

User Stats

122
Posts
63
Votes
Cody Smith
  • Realtor
  • Panama City Beach, FL
63
Votes |
122
Posts

How do you grow capital while saving to invest?

Cody Smith
  • Realtor
  • Panama City Beach, FL
Posted

Hey BP! I have spent a lot of time studying the real estate world, but I am still lacking in the rest of personal finance knowledge.

I have decided to only focus on the BRRRR strategy moving forward, so I am saving up to purchase my first cash property in 12 months.

Some context, I am still full time in the Army and have had my real estate license for about 8 months. I am building my sales business currently, and work mostly with investors in the Columbus, GA and Atlanta areas. I am focusing on growing my sales business and saving all resulting capital for my BRRRR.

Obviously, cash in a savings account is not a great idea. Where do you recommend placing this cash while I continue to build? Something ideally able to be liquid in 12 months, possibly sooner if I decide to partner on a deal while I wait for my capital to grow to where I need it. I don’t want to lose out to current inflation rates, and would love to for it to have some additional growth besides just what I contribute. Thank you!!!

Most Popular Reply

User Stats

1,242
Posts
975
Votes
Doug Spence
  • Investor
  • San Diego, CA
975
Votes |
1,242
Posts
Doug Spence
  • Investor
  • San Diego, CA
Replied

@Cody Smith I agree with @Caleb Brown. If you haven't already used your VA entitlement, then I would 100% house hack a 2-4 unit. Otherwise, I would find a private lender or hard money lender to get you the cash to buy an off-market property for your first BRRRR. Yes, it will cost more than using your own cash, but how much potential appreciation, cash flow, and knowledge will you miss out on whe you wait to save up the cash?

Most dilemmas in real estate can be solved by thinking about 'who' not 'how'! 

Good luck and keep us updated on your progress.

Loading replies...