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Updated over 6 years ago, 06/03/2018

User Stats

1,888
Posts
1,045
Votes
Jack B.
  • Rental Property Investor
  • Seattle, WA
1,045
Votes |
1,888
Posts

What are you doing with cash right now?

Jack B.
  • Rental Property Investor
  • Seattle, WA
Posted

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.

User Stats

13,248
Posts
19,246
Votes
Joe Villeneuve
Pro Member
#4 All Forums Contributor
  • Plymouth, MI
19,246
Votes |
13,248
Posts
Joe Villeneuve
Pro Member
#4 All Forums Contributor
  • Plymouth, MI
Replied

I'm using it.  Cash that sits is useless and losing value my the second.

User Stats

41,965
Posts
61,782
Votes
Jay Hinrichs
Professional Services
Pro Member
#4 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
61,782
Votes |
41,965
Posts
Jay Hinrichs
Professional Services
Pro Member
#4 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
Replied

pivoting a little .... and searching that next market.. and very strong into debt instruments.

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User Stats

9,365
Posts
6,550
Votes
John Thedford#5 Wholesaling Contributor
  • Real Estate Broker
  • Naples, FL
6,550
Votes |
9,365
Posts
John Thedford#5 Wholesaling Contributor
  • Real Estate Broker
  • Naples, FL
Replied

Buying rentals and doing HML.

User Stats

182
Posts
98
Votes
Kevin Dong
  • Flipper
  • Fort Myers, FL
98
Votes |
182
Posts
Kevin Dong
  • Flipper
  • Fort Myers, FL
Replied

Buying rental and flipping. 

User Stats

6
Posts
5
Votes
Replied

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.

User Stats

289
Posts
213
Votes
Chris Youssi
  • Rental Property Investor
  • Caledonia, IL
213
Votes |
289
Posts
Chris Youssi
  • Rental Property Investor
  • Caledonia, IL
Replied

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!

User Stats

1,240
Posts
3,063
Votes
Terrell Garren
  • Rental Property Investor
  • Concord, NC
3,063
Votes |
1,240
Posts
Terrell Garren
  • Rental Property Investor
  • Concord, NC
Replied

1) Dollar cost averaging by buying a couple SFHs rentals each year and 2) Avoiding debt until the next housing correction. 

Account Closed
  • Earth
187
Votes |
297
Posts
Account Closed
  • Earth
Replied

Buying more rentals,
then refinance,
then buy more rentals,
then refinance,
Repeat...

User Stats

10,239
Posts
16,091
Votes
Steve Vaughan#1 Personal Finance Contributor
  • Rental Property Investor
  • East Wenatchee, WA
16,091
Votes |
10,239
Posts
Steve Vaughan#1 Personal Finance Contributor
  • Rental Property Investor
  • East Wenatchee, WA
Replied

Buying rentals with cash at steep discounts as I get them.

Otherwise, sitting in a money market acct and napping until the frenzy wanes...

User Stats

6,603
Posts
6,945
Votes
Bjorn Ahlblad
Pro Member
#5 Multi-Family and Apartment Investing Contributor
  • Investor
  • Shelton, WA
6,945
Votes |
6,603
Posts
Bjorn Ahlblad
Pro Member
#5 Multi-Family and Apartment Investing Contributor
  • Investor
  • Shelton, WA
Replied

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