Leverage your liquidity.

How do you balance growth and liquidity?

I have gotten 90% financing for more than 1 first timer because of their credit and the quality of the project.You need to be very liquid using credit unions for the purchases of shell houses cause the rehab will be on you. 

No proof of liquidity.When I asked for any proof of liquidity, the realtor says they are not interested in jumping through hoops and called me a jackass.Is this how business is done now? 

I have liquid funds ready, but I want to make sure this is worth my time compared to the 5-6% cap rates I've seen on multifamily units in South Florida, which are close to what I already get from CDs and high-yield savings accounts without the hassle of property management.I'm also hesitant to invest out of state since I'm new to real estate and don’t want to make a costly mistake.

It's generally a useful tool for an investor who is estate planning and has a step-up in basis event on the horizon and can liquidate out of the REIT easier than out of the traditionally held property. 

REITs are easy to get into and highly liquid - log in to your brokerage account and buy a share - but you have zero control whatsoever.so...  

I have about $1M liquid currently but wouldn’t want to invest more than $200k on a property.

However, some investors don't mind this strategy if they prefer not to put a lot of liquid in up front and plan to refi out within a few years of closing (which seems to be a great option with the talks of the FED reducing interest rates into 2025).It really comes down to investing in a growing market, in a good neighborhood & building a great team to support you.

You also want to look at your liquid reserves because as you buy more rentals more PITI reserves are required and a Heloc can "Never" be used as an asset or for a PITI reserve.If you evver have any questions feel free to reach out I enjoy talking REI and I deal with them every day as  Banker.