Debt Financing vs Equity Financing

[Nuhan Demirkan]

Hello,

I have been wrestling with this question for a while and I'm hoping you would be able ease my anguish. My three sons, my wife and I have a partnership that owns 15 rental SFH's. The cash flow is good and we have decent equity. I want to scale our business to be able to support the entire family and trying to figure out how to fund the additional rentals. We've used fixed mortgages, private money, seller financing and portfolio loans. I prefer debt financing over equity financing. Has anyone been able to grow their business by just using loans? If so what was the source and how did you structure them?

I appreciate your feedback.

[Franklin Romine]

@Nuhan Demirkan Last year I refinanced part of my holdings similar sized portfolio that you have.  If you have equity you can suck out some of it and potentially reduce your total debt payments.  I went with a commercial loan cross collateralizing property and giving me a new infusing of cash.

Frank