WIIRE 032: Should You Buy a Property All Cash? with Amelia & Grace

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02/13/23 • 15 min

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Hello everyone, welcome back to episode 32 of the WIIRE Podcast! This week we have a special request from one of our followers on Instagram. Melissa writes:

“Hello loving your podcast. I'm new to real estate and we are looking for strictly cash flow to pay for liabilities we have. My husband wants to buy our first investment property with cash, hold, and then later when rates come down, and hopefully, the place appreciates, refinance. I would love a podcast on buying all cash and whether you think that would be okay?”

The short answer, it depends. But what does it depend on?

Well, there are a few factors we would take into consideration before making this decision and in this episode were going to talk about strategies for buying cash, the perks, and the pitfalls of both ways.

What it really comes down to is being able to predict when rates are going to come down. If we could do that, we would be crazy rich. But since we can’t we need to know how to lean into what you know and what you are comfortable with. If you know that you have no debt on a property and you want one cash-flowing rental then that could be a great option. However, if you are looking to scale we would advise against it because you want to keep your capital moving, as quickly as possible in most cases.

So many things can happen to any one given property so consider that. We like to have some diversification in our portfolios. Even if all of your properties are in the same market you can still have a diverse portfolio because you are not relying on one single tenant to pay for everything for you. If you are planning to buy a property then BRRR, or refinance within six months to a year, then we would consider that purchase.

Melissa also mentioned refinancing when the rates come down, but consider this: why not purchase it via financing right now, then refinance again when those rates come down?

“Just because you have a loan on it doesn’t mean you can’t refinance it.”

For us, we're in scale mode; so it's all about the next property. However, Melissa might not be. She might want one and done and that's okay. It’s a really personal decision and there is a lot to consider on both sides.

Thank you SO much, Melissa, for submitting that question. If you have a question you’d like us to feature in an upcoming episode send us a DM on Instagram or reach out via email.

Thanks for tuning in, we’ll catch you in the next episode!

Resources:

Join our private Facebook Community
Connect with us on Instagram

Hello everyone, welcome back to episode 32 of the WIIRE Podcast! This week we have a special request from one of our followers on Instagram. Melissa writes:

The short answer, it depends. But what does it depend on?

Melissa also mentioned refinancing when the rates come down, but consider this: why not purchase it via financing right now, then refinance again when those rates come down?

“Just because you have a loan on it doesn’t mean you can’t refinance it.”

Thank you SO much, Melissa, for submitting that question. If you have a question you’d like us to feature in an upcoming episode send us a DM on Instagram or reach out via email.

Thanks for tuning in, we’ll catch you in the next episode!

Resources:

Join our private Facebook Community
Connect with us on Instagram

Previous Episode

WIIRE 031: 7 Ways to Find Off-Market Deals with Amelia & Grace

Hey everyone, welcome back to another WIIRE podcast episode. This week we’re diving into a fun topic; 7 ways to find off-market properties. Both of us have purchased a good majority of our deals when they were off-market so we have some great stories and experiences to share with you.

Method 1: Driving for Dollars

This tried-and-true method involves you simply getting into your car, and taking a drive. While we have found that this method tends to work better in smaller towns, that doesn’t mean it won’t work anywhere, it just means you have to be more specific. What we do is drive around, looking for run-down multi-family properties, write down the address, then looking up the owner's information on the assessor's website. Once you find out who the owner is reach out to them, and ask if they have considered selling. Start the conversation, don’t overthink it, and don’t be afraid to ask. Lastly, remember that some ‘no’s’ might also mean ‘not right now’.

Method 2: Direct Mail

The direct mail method can happen in two ways: one is if you are looking on a smaller scale to find a property you like (think about method 1) and write them a handwritten note. The second way is more of a professional approach, but also more costly and yields a larger number of leads. However, with this route, you have to be prepared to funnel in a large number of leads and scale quickly.

Method 3: Calling For-Rent Signs

This is how Grace found her first property. She called the number on a for-rent sign and after realizing the owner was an investor she asked if they had any available properties they were interested in selling. After getting a list of around 30 properties, Grace asked to see the crappiest property because they knew they could make a massive dent and turn it into a BRRR. After walking the property they went under contract, while it was off the market.

Method 4: Wholesalers

In the world of REI, knowing people is truly where it’s at. Make sure you are joining local Facebook groups and attending local networking events to make those connections with wholesalers in your area. If you are going the wholesale route, make sure you are crystal clear on your buy-box so your time is not wasted by people sending you properties you wouldn’t even consider. Lastly, wholesalers are willing to sell quickly, for a lowball cash offer, which means you have to have cash and close quickly.

Method 5: Word-of-Mouth/ Contractors/ Networking

Another favorite method of ours, word-of-mouth is an effective way to find off-market properties. Don’t be afraid to shout from the rooftops what you do and what you are looking for. We recommend having a space (whether that is on Facebook or IG) where people can follow you and you can keep your name in their heads so when they do hear about a deal, they remember to connect with you about it. This also goes for letting your contractors know because they know a lot of people and are very well-connected.

Method 6: Social Media

We touched previously on social media but when you make sure people can find you easily and see what you are doing people are much more likely to reach out to you. Also, we both have experienced organic leads (both legit and not-so-great) from social media, so make sure you are posting those rehab photos!

Method 7: Connecting with Current Landlords

This final method is another tried-and-true one and we cannot emphasize enough how important it is to utilize your network. Contact investors/property owners, you have purchased from before, or other local landlords to see if they know of any gems that might not be on the market. By purchasing off-market deals you are also avoiding realtor commissions and landlords are always happy to have more money in their pocket from a sale.

The moral of the story about off-market properties is that sometimes they're hard to find, but if you just keep your eye out, you're constantly putting yourself out there, and you're always asking questions, they will come to you.

We hope you enjoyed this episode and we will catch you in the next one.

Resources:

Get clear on your Buy-Box
Listen to our Guide to Rental Arbitrage
Join our private Facebook Community
Connect with us on Instagram

Next Episode

WIIRE 033: Step by Step Guide to Wholesaling with Jenn Delle Fave

Hello everyone, welcome back to another podcast episode. This week we are so pumped to introduce you to our friend and mentor, Jenn Delle Fave, who is going to talk about all things wholesaling, and also dive a little bit into creative financing since that is her niche. Jenn and her husband Joe are all about creative financing and wholesaling can be such a scary topic so we are going to break down exactly how it works so you can dive into it, a little less scared. While it can be scary to start, wholesaling can be an extremely fruitful tool to have in your investor toolbelt.

Jenn and Joe have been married for just shy of 13 years, have two kiddos that they homeschool, and recently relocated from upstate New York to sunny Florida. They love having the ability to live their lives on their own terms! They do real estate full-time, having just opened an office with full-time employees, and also offer coaching. Lots of different avenues and are excited for what 2023 will bring their way!

It is also important to note that they are not realtors, so when we say they opened an office, it’s not a real estate office, it's specifically focused on creative financing and wholesaling.

To say they stay busy would be an understatement, but they truly are passionate about their work and while it may sound cheesy they know they are in the right place doing what they love because they truly enjoy it.

Their journey started when Joe wholesaled his first deal well over 20 years ago, before Jenn was even in the picture. But when they met in 2008, they began buying junk houses together off the MLS when the market crashed, they discovered they despised being landlords. They decided to pivot into the rent-to-own model and began to learn the art of creative financing. They started accumulating properties with little to no money down, taking over sellers' payments, and have been able to build their portfolio well into the 20s.

They actually help people own their own homes so the numbers are constantly changing with gaining and losing doors. Jenn and Joe have also really dove into wholesaling to help their company grow. After Joe’s first stent, it didn’t happen again until 2020.

To learn more about Jenn you can head over to Instagram. They also have an awesome Facebook group, Creative Finance Playbook with Jenn and Joe, where they go LIVE every Tuesday. Inside their group they offer free trainings, talk about their deals and share other great information. You can also follow them on their YouTube channel.

Thank you so much for tuning in. We'll catch you in the next episode.

Resources: