Have A Lot Of Cash, What Shall I Do?
I want to get started as a rehabber in the NYC metro area. Should I use a lending house with my cash to maximize my RIO? With this method I would invest in a more expensive piece of property with a higher RIO. OR- Should I use all the cash to close. With this method I would invest in a lesser expensive piece of property with a lower ROI, but use the 'all cash' to bargain down the asking price.
Hummmmm, so much cash, what to do ?(a dilema! 
)
Any suggestions with what to do with cash?
gemsre 
I'm a newbie in the NYC area. Where are you thinking of putting your cash? I'm looking at different opportunities.
Have you ever thought about using it to become a hard money lender?? It is short term and you usually get between 10-20% interest rate... usually it is only a couple months to a year at the most.... so its not bad. Just somethin to think about...
One common method is to use cash to buy a place, refinance it, then use that cash to buy another, etc, etc.
To me it is pointless owning any real estate outright, you should always be leveraging yourself and with interest being tax deductible...
Quote:
On 2004-11-06 07:13, ray_higdon wrote:
One common method is to use cash to buy a place, refinance it, then use that cash to buy another, etc, etc.
To me it is pointless owning any real estate outright, you should always be leveraging yourself and with interest being tax deductible...
Thanks ray,
Definition of leveraging:
n : investing with borrowed money as a way to amplify potential gains (at the risk of greater losses)
Can anyone offer what types of refinancing, or lending institution methods you used to leverage your investments? Did you use any non-traditional methods (FHA 203(K) or construction loans, financing from the seller) or did you stick with the traditional methods?
gemsre