117. Should You Use Debt to Buy Commercial Real Estate?

“Debt is bad.” Most of us grow up learning and believing that statement (or something close to it) to be true. And, for the most part, it is. But like everything else in life, context is, well … everything. For example, if you came to me and told me you were unemployed, going to max out four credit cards, and ask grandpa for a loan to buy a brand new F150, I’d tell you that’s a straight up bad idea. And the “debt is bad” advice is mostly talking about just those sorts of transactions, consumer debt. But what about using debt in a different context? What if you’ve spent hours and hours researching a particular investment, a proven investment that you thought had a reasonable chance of return? What if you came to me asking whether that might be a good use of debt? Well, I always refrain from giving advice like that, but for the sake of this analogy, I might be convinced it’s a good idea. Here’s the thing… debt isn’t always bad. You have to be smart and careful in your use of it, but it can be a powerful weapon when it comes to investing in commercial real estate.

www.tylercauble.com/podcast/episode117