Advantages of lump sum principle payments

[Steven J.]

I recently came across a thread with the term lump sum principle payments. I've searched this term and have failed to come up with much evidence as to how it helps investors except for with tax purposes.

"I utilized private funds with lump sum principle and interest payment at close of escrow on sale which eliminates mortgage payments, thus reducing the amount of out of pocket cash needed. 4 months is fairly quick for a rehab flip here in CA, especially when rehab is over $50k."

From "The Truth about Wholesaling" Forum by @Will Barnard

How does lump sum payment eliminate mortgage payments unless you paid it all? At which point, why not buy in cash? I don't get it.

- Confused -