Passive Real Estate Investing TBT: Can I Get a Better Deal Buying “All Cash”? The Pros and Cons
Feb 6, 2025
Dive into the intriguing debate of cash versus financing in real estate investment. Discover how leveraging your money can unlock greater wealth, especially in today's competitive market. Learn the benefits of financing for tax breaks, cash flow, and accelerated financial independence. The conversation also reveals how debt can protect your assets through legal structures like LLCs, while addressing the risks and rewards of each approach. Valuable insights await both new and seasoned investors!
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Conrado's Question
- Conrado wants to buy 10 units in 10 years, starting with $200,000.
- He asks if he should buy in cash or finance.
All-Cash Offers
- Buying all-cash may not always guarantee a better price, especially in a seller's market.
- Leverage is more effective with motivated sellers or distressed properties.
Financing vs. All-Cash
- Financing allows you to leverage your investment and potentially achieve higher returns.
- Marco provides a hypothetical example comparing all-cash vs. 20% down payment.