Using regular loans to buy RE in cash

[Lisa Renee]

Hey BP Family,

Can a regular bank loan be used to buy RE in cash or is that frowned upon?

Thanks,

Lisa

[Anthony Dooley]

Yes, if you get a personal loan or a HELOC on your personal residence you can buy a property free and clear. I have used personal loans of $20,000, combined with some savings, to buy property with cash. I typically pay these back within a few months because I like to keep my debt as low as possible. I once used an $80,000 HELOC to buy a house like cash. That house is owned free and clear and I use the rent from that property to pay off the HELOC very quickly.