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Updated about 4 years ago on . Most recent reply

User Stats

18
Posts
9
Votes
Jason Holtzinger
  • Santa Rosa, CA
9
Votes |
18
Posts

Buy with cash or get a loan?

Jason Holtzinger
  • Santa Rosa, CA
Posted

My question is:

If I have enough capital in the bank to purchase my first few properties in cash would there be an advantage to obtaining loans for them anyway? If I did just put 20 percent down on each and obtained a loan for each it would obviously leave me additional monies to purchase more by putting 20 percent down. 

However, would it not be smarter to just buy the first 2 or 3 cash as I find the deals and when I want to purchase more or as I find additional deals to just finance against the previously purchased properties as needed? my thinking is that if it takes me months or a year or more to find additional deals I would needlessly be paying the bank interest?

I wanted to throw this out there for opinions incase I'm blindly overlooking something.

Thanks,

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