All Forum Posts by: Francois G.

@Nathan G.

Great post. A few of my clients LOVE accepting pets due to being able to charge premium rent and the lower turnover.

@Brian Gerlach

Brian, I appreciate you taking the time to write this out.

I think the points you are making are valid. But do you think these points are valid enough to go $2-3-400k more out of pocket than you need to?

@Lynnette E.

A wealth of insight here. Thank you sharing this!

@Bill F.

The “convince me” part is just tongue in cheek! Like I said, I’m a leverage guy and will always be a leverage guy. I’m more curious on the reasons why YOU prefer buying all cash. There’s really no right or wrong answers since it’s all subjective anyway but there’s pros/cons for each (although I think there’s alot more cons with buying all cash)!

@Linda S.

You’re correct on this. The only part of what you said that I want viewers to be careful of is the huge discount in price (you sound like you run an efficient business, this is more for the first time buyers)

An all cash offer is going to discount the price for you but I want buyers to be VERY CAREFUL using this strategy.

Don’t expect to get a $500k home for $375k just because you’re buying all cash. Yes, an all cash buy prevents any financial contingencies and speeds up the acquisition process, but a seller isn’t chopping off $125K (30-35%) just because you’re paying all cash.

In reality, you’re only saving the seller a few weeks of time. Most sellers will take the few extra weeks of stress in exchange for $125K. A client of mine learned this the hard way a few years ago.

The point I’m making is don’t over-value an all cash buy! It has its perks but it can also kill a deal if it’s over-valued.

@Joe Villeneuve

Nailed it!!

@Moises R Cosme

Great post! My favorite part about it was the adjustment you made when dealing Covid. Too many investors are narrow minded when it comes to their criteria (which is GOOD! But the ability to adapt during unforeseen circumstances is even better) and aren’t opened to change. Thank you!

@Jonathan Burmenko

In both of our markets (you’re in the Bay, I’m in NYC), having leverage is even more advantageous!

Like you, I have clients who are very cash dependent. 99% of the time I tell them MY OPINION (our job is to have their best interest but at the end of the day it’s their money and they’re going to do what they want with it) and tell them to use leverage, even if they have 20x the home value sitting in their bank account.

Best of luck to you guys on the West Coast!

Hey Guys,

The name of the game has always been leverage for me. Building wealth can absolutely be accomplished by using credit, OPM, etc.

Every now and then, I come across that investor who buys his properties all cash and I can’t help but ask, WHY!?

I’m an investor-friendly agent in NYC so some clients tell me they prefer not to have the interest as an extra expense, some clients prefer the instant equity, some clients prefer the easy liquidation, etc.

Why do YOU prefer buying all cash? Im looking more for subjective reasoning why you prefer all cash because I’m sure people in different circumstances have different reasonings.

I’ll always be a leverage guy but I would love to hear why cash is king to your investing careers. Thanks in advance for any responses!

@Kelly Claiborne

Pre-covid, one of the markets I’m planning to invest in was projected to have significant job growth. I’m going to wait a few months to see how high unemployment stays since a lot of businesses are reopening at less capacity or not reopening at all.

I wouldn’t consider this delay in action. I have a strict criteria that I’m following so I don’t see the need to invest just to say I’ve invested. COVID has made me re-arrange my criteria a bit (as I’m sure it has with others) but these challenges make the game more fun for me.

Best of luck!