How do you approach saving for your next real estate investment?

[Rene Hosman]

When I was saving for my first real estate investment, it felt like an uphill climb, but having a plan made all the difference. I started by setting aside a percentage of my income every month, treating it like a non-negotiable expense. I'm in the process of completing my first BRRRR and though I know the money is sitting there in equity, it's hard to watch the money leave my account! Given current interest rates, I don't want to be cashflow negative so I will likely be leaving most if not all of my renovation money in the deal. I suppose I am grateful that there even was money to leave in the deal and that I have flexibility on what my next step is.

Now, I am also realizing the power of leveraging equity from other assets—like my house hack—and even explored partnerships to spread risk and build a stronger position. Looking back, the biggest lesson was saving from a position of financial strength. Having cash reserves gave me the confidence to move quickly on a great deal without losing sleep over unexpected expenses. Now I'm curious how the BP community thinks about and saves for their next RE investment. How do you approach saving for your next real estate investment? Why is that the approach that works best for you right now?

[Tim Delaney]

Quote from @Rene Hosman:

When I was saving for my first real estate investment, it felt like an uphill climb, but having a plan made all the difference. I started by setting aside a percentage of my income every month, treating it like a non-negotiable expense. I'm in the process of completing my first BRRRR and though I know the money is sitting there in equity, it's hard to watch the money leave my account! Given current interest rates, I don't want to be cashflow negative so I will likely be leaving most if not all of my renovation money in the deal. I suppose I am grateful that there even was money to leave in the deal and that I have flexibility on what my next step is.

Now, I am also realizing the power of leveraging equity from other assets—like my house hack—and even explored partnerships to spread risk and build a stronger position. Looking back, the biggest lesson was saving from a position of financial strength. Having cash reserves gave me the confidence to move quickly on a great deal without losing sleep over unexpected expenses. Now I'm curious how the BP community thinks about and saves for their next RE investment. How do you approach saving for your next real estate investment? Why is that the approach that works best for you right now?

I used a combination of leveraging my business line of credit, HELOC and partnerships for my first couple deals before adding in private lenders. In that way I was able to scale quickly, doing multiple flips and BRRRRS per year.