When it comes to real estate, back in the day there was no conventional financing for homebuyers or business properties. If you had cash resources available, you could do business; if you didn’t have money, you needed to find a partner or you were in trouble. In recent decades, conventional financing became easier and more readily available, but today, banks have tightened up. Money is still available for financing, but if you want to be out there and compete successfully for a deal, Cash is King.
And you need to have a nice amount of cash. Most properties in Brooklyn are around the $1 million plus mark so you need to show your down payment money. The bank also wants to see that you have money, so that if something goes bad, you have a way to sustain yourself. When it comes to real estate, cash is definitely the thing you need if you want to get deals done.
