Cash in savings - waiting is losing money?!

[AJ Anderson]

Hi gang

I've got a chunk of cash that I'm trying to put into a MFH in the West Palm Beach area of FL. One deal fell through and no others seem to work right now for me in terms of cash flow.. I've been putting off STR due to the ease of the LTR model but would I be better off investing the money in a STR property through winter (ski area) to at least pay for itself plus gain the equity then re-evaluate in spring? Values are still skyrocketing so I estimate about $50k+ equity gain in 5-6 months.

I guess my real question is.. how long would you wait for the perfect deal as opposed to investing in something that is just ok just to get the money working for you?

[David Ginn]

Hi @AJ Anderson

Pull to a cash position and go into lending or flipping, these are your best options. The market is going to correct and fall. DO NOT buy a house right now. Do not buy multifamily.

You're at the top of the market and it’s going to correct and fall. I won't wait for the perfect deal. It's critical right now that you take your cash and put it into lending with people who are flipping.

In the system, people are making 12% or 3.75 points that is 15.75 % or points a year on a deed, If you're going to be active in the system. Or you’ll get 20% of the equity share, so you do want to lend. With lending or flipping once, you're going to probably make 30-40% a year, if you're actively flipping and your full time.