Ask Cornerstone: Is investing all my own money in a flip too risky?
Investing in real estate shouldn’t be seen as a high-risk endeavor. Hopefully, you’ve accumulated experience and knowledge to do a good analysis on your investment to keep your risk very low. If you are too uncertain, then the answer is “yes”, it’s too risky. Download our flip calculator to help your analysis and watch this video overview on how to analyze a flip: https://youtu.be/7wIWg1gvpRk
If I take that same question from another angle, we can discuss the potential opportunity cost of investing using your own money. The return on investment (ROI) from the profit of a house becomes a higher percentage against a lower amount invested. By leveraging private money funds, it frees up your money to invest in another opportunity or in a second flip.