Cash vs. Leverage for Real Estate Investing |
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If you’ve got cash on hand, should you use it to buy a rental property outright? Or is it better to utilize leverage and keep your money in the bank?
❓Ask me a 30-second question at https://morrisinvest.com/clayton 📞 Ready to buy your first fully done for you rental property? Book a free call with us: https://morrisinvest.com 📺 Watch Next: How to Create Your Personalized Path to Financial Freedom: https://bit.ly/392kAsB 🏠 What's Your Freedom Number? Download our free PDF to help you determine how many rental properties you would need to achieve financial freedom: https://morrisinvest.com/freedom 💵 Ready to get your finances in order? Download the FREE 90-Day Financial Empowerment Bootcamp: https://morrisinvest.com/bootcamp 🎓 Want to learn more about creating your individualized plan to wealth with a proven system? Join us in Financial Freedom Academy: https://financialfreedomacademy.com How to Pay Off Your Mortgage in 5 Years: https://amzn.to/2OrjTSD The Ultimate Guide to 1031 Exchanges: http://bit.ly/2kQPvUb ----------------- What You Need to Know About Cash vs. Leverage Right now, interest rates are at a historic low, so if you’re considering whether or not to use leverage, I’d say do it! Interest rates are hovering around 3%, so now is a great time to use the bank’s money. Use some cash as a down payment, and then keep the rest of it in a high-yield savings account. If You Should Prioritize Paying Off Debt or Investing I like to think that you can pay off debt and invest at the same time. If you’re working on paying off your mortgage, you can also use the available equity to start investing in real estate. I say don’t wait to invest because you have debt. Do both and invest in your future as soon as possible. The Best Way to Put a Paid Off Rental to Work If you have a paid off rental, there are a few options available to you. Depending on the property value and ROI, you might consider a 1031 exchange. If you’re not interested in that, you can tap into the equity with a HELOC and grow your portfolio. ----------------- DISCLAIMER: I am not a financial adviser. I only express my opinion based on my experience. Your experience may be different. These videos are for educational and inspirational purposes only. Investing of any kind involves risk. While it is possible to minimize risk, your investments are solely your responsibility. It is imperative that you conduct your own research. There is no guarantee of gains or losses on investments. AFFILIATE DISCLOSURE: Some of the links on this channel are affiliate links, meaning, at NO additional cost to you, I may earn a commission if you click through and make a purchase and/or subscribe. However, this does not impact my opinion. We recommend them because they are helpful and useful, not because of the small commissions we make if you decide to use their services. Please do not spend any money on these products unless you feel you need them or that they will help you achieve your goals. |