In short, buying REITs are very liquid. 

I have some liquidity and I’m starting to put offers on properties.

So if the reality is the GC really needs 1/3 upfront to pay their people and materials but I don’t want it to be so liquid that they can just walk with it….meaning I am not giving them literal cash.  

The biggest risk is if the stock market crashed hard enough, and your portfolio balance dropped below a certain point, they could issue a margin call and require you to deposit additional funds or they would start liquidating your account.

Liquidity shown via bank statements.

Shouldn’t one favor more liquidity and less debt if looking down the barrel of another recession.Distinguishing “good” debt and “bad” debt is a good place to start here since all debt is not created equal.Investopedia defines good debt as:Good debt is often exemplified in the old adage “it takes money to make money.”

I am taking a break from flipping this year (I hope) and fairly uninterested in being a landlord (I am liquidating most of my hold properties right now) so I have been looking into real estate adjacent franchising opportunities.

@Ryan Shannon, It is possible to do a 1031 exchange with owner financing as long as the seller has enough liquid cash. 

Have your IRS taxes 2019 2020 in front of you, what is the 1099 total for 2021 and 2020,  know how much $ liquid you have, talk about 2 different proposed purchases with the property type, condition, price, location and I would be happy to help clarify your layers of questions. 

We really want this deal but don't have 30k liquid at the moment and this deal is too good to pass up.