Buying without financing

[Juan Marino]

Hello everyone, just wanted to get some information and know if I can buy a house without a lender and pay it full price. Is it worth it? Is it better to invest in multiple houses and have financing?

[Anthony Gayden]

Originally posted by @Juan Marino:

This is great! 

I have a question though, I’ve been reading “ long distance real estate investing” by David Greene. In one of his chapters he says that he likes to pay cash for some of the houses he finds because it allows him to get rid of a lot of competition that will do offers with conventional loans. Also, the seller might give a bellow the market price deal for because is cash. 

Is this one of the few benefits of not doing financing when investing?

Do you think this could potentially outweigh the tax benefits, ROI and so on...

Do you think is a good approach if I’m starting out in real state?

Sorry for so many questions!

Thank you so much for taking the time!

Absolutely that is a benefit when using all cash. Keep in mind though that David Greene eventually does refinance the homes he purchases using the BRRRR method since he does rehab work on the homes.

Seeing as how you are starting out it really depends on how you are investing. If you intend on using the BRRRR method or flipping, I think that buying all cash will give you an advantage. If you are intending on doing a simple buy and hold, I think using conventional financing is a better route.