what is a good amount of capital? meaning, what are you considering a “good amount”? that is a relative term.
your questions all depend on what you plan to do.
if you want to build your rei portfolio slow and steady, then putting a good amount down on a good property is a wise choice. as long as you leave yourself a good amount of funds liquid to manage it.
there are so many different ways to conduct your re investing, that’s what makes it a very good financial choice - it gives you control.
some people will talk alot about “net worth” and others will talk about “cash is king” and on and on.
the main thing is that you manage your re investing as a business. cash is extremely important to any business. you can have everything else looking wonderful, but if you don’t have cash, your business will die.
that’s how i’ve approached rei so far. i’m not concerned with “analysis of whatever”. if you’ve done some deals already, then you certainly aren’t stuck in that.
i’ve said this alot before [because i’ve read it so many times, and if you want to run a successful real estate business, to me, this is the most important thing, it just makes sense] - you have to buy BELOW MARKET, in order to be a real estate INVESTOR.
so now, think about that as i often do when i look at any properties. if you’re putting 25% down on a property to “make it cash flow” because you’re buying at 5% “below market” - then that’s not really engaging in real estate investing. it is “investing” somewhat. it’s a different kind of investing. it’s slow and steady and safe. buying a house in an appreciating area at about market value with a good amount down so you can make a comfortable cash flow is investing.
but what you’re referring to in your post (i think), is a strategy that is much faster, riskier and offers alot more cash potential, alot more property buying and a bigger business…that’s rei business. looking at properties, finding them with a potential to get’em at 30 to 40% below market- doing the numbers at little to no money down-and coming up with offers that get your business at a good cash flowing amount is the true nature of the business of rei.
does this make sense? think about coca-cola - they don’t sell one soda a month - they produce 500,000 soda’s a week and pump those suckers out all over America. they know how much to make, where to send it, who’s buying it and they know exactly how much the consumer will pay - it’s business.
the choice is yours for your business/investing strategy. both are good strategies, one is more risky than the other because you’re engaging in high leveraged positions on multiple properties at one time. but if you know what you’re doing - then it’s less risky, obviously.