What is an Option and how does it "tie up a property"?

No harness, no tie downs etc.

No sense tying up that much cash if it's only mediocre.

Hi,I have talked to my banker a bit more in regards to a couple of properties I have looked at, analysed, and am interested in making offers on.For a bit of background, I am short on 'liquid cash'.... it's all tied up in either my ROTH IRAs, SDIRAs, a Life Insurance Policy, or the home equity of my primary residence that is paid for and listed for sale right now, partially so I can downsize and use some of the built up equity to invest in more buy and hold rentals.

Furthermore the gross rents in comparison to the mortgage are typically much stronger and when you exit that property it will make it much easier to obtain financing on another property.

I understand your attitude, especially when people learn from gurus and then go hit the streets as if they have an education in RE.Most don't have a clue, they have gone down the wrong road trying to learn RE as some assembly line system and really, they cause problems in the market submitting contracts as if doing so is just some simple formality they need to do to tie up a property.

In fact, wearing a tie is like having a noose around my neck but I will do it for the right occasion.

Pre-approvals are important as a pre-approval letter- Gives you a stronger offer- Shows that you are serious and qualified for a mortgage to purchase the property of interest- A pre-approval will also tell you how much you qualify for so you are looking in the right price range- It will also help speed up the buying process once you found a house.

We have approx $275k in equity right now (so the bank wants to throw $$ at us) but even though we are stable financially, I still question tying a loan to my residence.

Might concentrate on the activity rather than tying the dependence of tenants to her income required to cover the property.