Why Real Estate Investing Takes Cash
There’s no such thing as a zero down deal and if someone offers you one, you’d better read the fine print.
We get it. We’re a hard money lender, and our job is to get you the funding you need to close deals. But we’re not here to sell dreams. There is no such thing as a zero down loan in this space. Real estate takes capital. It always has. So let’s talk about why you need to bring cash to the table, what that money actually covers, and how to get it if you don’t have it yet.
Skin in the Game Keeps You Accountable
Lenders need to know you’re committed. Not just mentally, but financially. If things go bad (and at some point, they will), we want to know you’re not just going to walk away. Having your own money in the deal means you’ll stay in it, solve the problem, and get the job done.
We don’t expect things to go perfectly. That’s why we underwrite conservatively and look at the whole deal. But if you’ve got nothing to lose, you’ve got no reason to finish the job. And that’s not a position we or any lender is going to back.
Cash Covers the Gaps Your Loan Doesn’t
Even the best loan doesn’t cover everything. You’re going to need to handle closing costs, inspections, insurance, permits, taxes, and utility bills before the rehab even starts. And once the work begins, you’ll be covering expenses until your draw requests are approved and processed.
This is the reality of real estate. It’s not complicated, but it’s not cheap either. You need cash on hand for the unexpected. If every dollar is tied up in the purchase, you’re one delay or busted pipe away from falling behind schedule and blowing the deal.
Want to Invest? Stack Your Cash First
If you don’t have the money yet, that’s okay. Save. Partner up. Get help from friends or family. There’s no shame in building slowly. That’s how most investors get started. You need to treat this like a business and businesses need capital.
If you’ve got a steady job and a basic budget, you can stack the cash you need within a year. Skip the trips. Cut the expensive dinners. Real estate is one of the best paths to long-term wealth, but only if you’re willing to put in the work on the front end.
Conclusion: Be Ready When the Deal is Right
We’ll help you close fast. We’ll finance what makes sense. But we’re not here to carry the whole thing and neither is anyone else who’s serious about lending. If you want to do this for real, get your cash in order. When the right deal shows up, you’ll be ready to take it down.
