Help selecting the best funding option right now.

2 Replies

I need help determining which of our money options we should use to fund our first deals. We have access to money through a self directed ira, some liquid cash (15kish), or a large available credit from c.c.s (0% type deal) So my question is which option do you think is the best for right now. The self directed ira (is still funding), the liquid is our emergency fund, the CCs are empty and we have the ability to pay the high payment (the difference between cash flow and minimum cc payment) until it’s refied to permanent financing. I’m just wondering a general opinion of what route you use. Thanks Jamarr

@Darius Henry ,

Highly dependent on what type of deal you are talking about, but I will give you my general opinion on each.

SDIRA - RE is already tax advantaged and there are a lot of things that can go wrong so I don't like putting it in my SDIRA. I prefer non tax advantaged, more passive investments.

Emergency fund - No, just no. It's awesome that you have one, don't blow it now. Is this an emergency? enough said. 

CCs - Typically not a realistic option once you realize the costs and limitations of using cash advances. I will give you a hint, they usually are not allowed for your entire available balance or have a set max, come with hefty fees, and often are not included in the promotional intro rates.

All of these are great points and is why I put it out there. So you would suggest, just continuing to save more liquid cash for down payments etc. I’m just trying to eliminate all the reasons why I “can’t” get started. We have really good income we’ve just been paying down debt and saving for short and long term goals.

My potential returns from RE would be higher than the interest on debts we are paying down. (Ie students loans with lower interest rates) so technically you get a better bang for your buck by investing.

Thanks for replying The comment on using accounts tax efficiently I’ll definitely keep in mind.

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