Cash or Leverage??? Should so use my own money or a Loan broker?

[Beverly Joseph]

Hi Guys, I've recently received quite a bit of money from my equity investments but I'm looking to venture out into real estate. I have no idea where to begin! I've looked up some information on YouTube and I recently discovered BiggerPockets. It's seems like a very good forum so far! The internet is however loaded with information so I'm a bit confused where to begin. I'm dedicating the next year to educating myself about Real Estate. I'm looking into purchasing a couple 5-20 unit apartments. My big question is Cash VS Leverage, which is the better way to start? I've recently quite my job to stay home with my two kids but I really want to get into Real Estate. I also need the ability to generate cash flow. I'm in my mid 30s and ready to do something that will grow my family's wealth even more. Please help?

[Jon Lee]

Hi @Beverly Joseph....Welcome to BP.

I definitely agree with @Jay Dean, @Shawn Ackerman, & @Shawn Ward about maybe wanting to partner up with an experienced multi-family investor for your first investment if you want to go that big out the gate. I recommend starting to network with multi-family investors at your local REIA/Meetup group for investors.

Concerning cash or leverage...I'll always choose leverage so you can maximize your ROI and flexibility in acquiring more properties. There are a ton of lenders (both private & commercial) that you can access through networking and a little focused research.

There are more considerations to take into account but that is my opinion on your question.

Best of luck to you!