General Real Estate Investing
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated over 6 years ago, 06/03/2018
What are you doing with cash right now?
Are you pooling cash for the next crash, or sinking it all into the current market? Are you putting the money into non real estate investments, or other investments in general?
I'm personally sitting on cash but have a lot invested into real estate as well, and some in index funds. I'm looking for a deal but as usual it has become harder every year with such limited inventory.
I'm using it. Cash that sits is useless and losing value my the second.
- Lender
- Lake Oswego OR Summerlin, NV
- 61,782
- Votes |
- 41,965
- Posts
pivoting a little .... and searching that next market.. and very strong into debt instruments.
- Jay Hinrichs
- Podcast Guest on Show #222
Buying rentals and doing HML.
Buying rental and flipping.
Looking to get a rental or two with my current cash pile, I do not believe in a direction at this point in stocks, crypto, or most commodities, so I am not trading them. A little options, but that's it.
The way I see it is the rentals I am looking to purchase will generate cash-flow and any appreciation is a bonus. The cashflow it's self will produce more than adequate returns and by the time the true bloodbathe comes for stocks or real estate I'll have enough accumulated up to scoop up a couple rentals. If you COC return is above 10% buying today and having the market scream down tomorrow will likely break you out even as the low wouldn't be achieved for a few years most likely and unless you're buying garbage or a true collapse occurs you aren't likely to lose more than 30-40% so the cash-flow alone will likely off-set the oppertunity cost lost in buying it at the bottom. Add in the mortgage payments and you should be way ahead. Just don't buy in a market that's not growing or extremely overpriced rent-property value wise.
In terms of other vehicles, crypto is dead and I won't enter at all till a bubble begins again as it could easily die for years and never come back. Stocks are shaky and I'm sick of Trump manipulating the market (intentionally or not, probably unintentionally) and the general flip-flopping of politics right now with China/NK, not to mention the other markets (Italy) that are having some troubling signs. I'll wait for confirmation of an uptrend and this mess cleared out, till then I'll sit on cash and try to find rentals.
I'm with Jay on the pivoting. I'm starting to hear - see little bumps in the market with first time buyers pulling back/ new starts slowing down just a tad nothing serious / rate increases. We have had a real nice run with rates and they are heading north no doubt about it. Couple things to remember Cash is king always will be and You can never lose money by taking a profit. I'm selling a few and putting the cash in reserves for future opportunities. I look at real estate like Apple / John Deere / Disney all commodities some ay nicer dividends some have a nice run coming. However if they have peaked and are only going to give you small increases for me < 5% ( not counting debt reduction from tenants or monthly cash flow ) I'm selling. Will I sell too soon - sure but again you can never lose money by taking a profit!
Happy hunting!
1) Dollar cost averaging by buying a couple SFHs rentals each year and 2) Avoiding debt until the next housing correction.
Buying more rentals,
then refinance,
then buy more rentals,
then refinance,
Repeat...
- Rental Property Investor
- East Wenatchee, WA
- 16,091
- Votes |
- 10,239
- Posts
Buying rentals with cash at steep discounts as I get them.
Otherwise, sitting in a money market acct and napping until the frenzy wanes...
- Investor
- Shelton, WA
- 6,945
- Votes |
- 6,603
- Posts
I am doing it all. Selling, buying, and hoarding! Go crash! As long as you sell at a completely silly price it does not hurt so much when you buy at an inflated price! LOL