Buying Slow, And With Cash
Andy is revved up about buying real estate, but Dave tells him of a very important thing to have first.
QUESTION: Andy asks how you can buy rental properties at the right times, if you want to save up the cash to buy them.
ANSWER: Do it slowly, until you get a few. At that point, it goes faster because you have more money. I’d rather own one paid-for house than 10 that are leveraged. It’s an opportune time to buy, but I talk to people everyday who are hurting because they bought commercial real estate with borrowed money. You need to stay in a strong cash position.