Private Lending

How Much Cash Do You Need to Start in Real Estate?

The amount needed to get started depends on the type of project and the level of risk.

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The amount needed to get started in real estate depends on the type of project and the level of risk involved.

In general, you should plan for:

• the down payment (5% to 20% or more)
• notary fees
• inspection fees
• a renovation budget (if applicable)
• a contingency reserve

For a first project, it's recommended to keep a safety margin to handle unexpected expenses.

Cash Flow and Private Financing

In flip or private financing projects, cash needs can be higher, but they also make it possible to access faster, more flexible opportunities.

Good financial preparation is essential to avoid getting stuck partway through a project.