Don't Buy and Hold!!! Until you have $100K - training from the Edge

At the Deans edge event 2014 Matt Larsen taught an important principle of Liquidity. If you are looking to buy and hold properties having bank financing is crutial to that business. Banks now a days want to see strong borrowers. It is harder to get loans than ever before.

Matt suggested that all investors before they start buying and holding they need to have at least 100K in the bank that they don't touch. This will give you enough liquid money to cover any rainy day and also give the banks enough confidence that you can keep their loan performing.

He also suggested that everyone should start with wholesaling then do fix n flips then buy and hold, in that progression order.

After he taught these principles it made so much sense and I would also support that as well. I feel everyone needs to learn to create money out of thin air by wholesaling, create the deep pockets of cash, then buy and hold when your ready.

Thank you for a great lesson Matt.

Mikessler