Debt vs. No Debt Real Estate Investing

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on Jul 09 in BestTransactionFunding

Is it wiser to use debt leverage to invest in real estate, or pay off all of your bills and stick to cash purchases?

This is an increasingly popular question among aspiring real estate investors. Many have been turned off to all forms of debt. So they question whether they should wait to invest until they are debt free, and then stick to buying properties for cash. Others find this idea absolutely insane given the speed, high returns, and apparent reduced risk of using other people’s money to invest. So who is right? Which method is right for you?

Leverage: The Good, Bad, and Ugly

Financial leverage is unquestionably the most powerful tool available to investors. It can help lower and spread risk, speed up results, and maximize cash on cash returns. But it is also true that leverage can be dangerous is used poorly. If you are constantly in a zero equity position, have negative cash flow, and fail to squash your overhead so that you are truly and sustainably financially free, it is a recipe for disaster.

So leverage is important no matter whether you are starting out with millions or pennies. It is equally important not to drown yourself with debt either. Fortunately, there is a hybrid solution that will make both camps happy, and maximize their investment activity…

The Highly Leveraged Debt Free Way to Invest for Maximum Gains

By using transactional funding for flipping houses as a wholesaler investors can benefit from 100% financing from their deals, but can be debt free again within hours. Best Transaction Funding will provide up to 100% of the money investors need to acquire wholesale property deals that will be instantly flipped. By turning those properties around in days investors are never tied to long term (bad) debt. They make the maximum possible return, with the lowest risk, and enjoy the best of both worlds.

Then those lump sum cash profits can be used to pay off other existing debt like credit cards, car loans, student loans, and home mortgages on personal residences.

But…

Don’t wait. Waiting until you’ve paid off every penny you owe in borrowing right now is just an excuse to stall. That means missing many very lucrative opportunities. And you can’t afford that. Especially if you do have bills. Get started, make money, pay off your borrowings, and claim real financial freedom without being lumbered with long term debt.

Authored by Best Transaction Funding BestTransactionFunding.com is the leading source of transactional funding and hard money loans for real estate wholesalers in the US, where 100% financing, and saying “Yes” is what we love doing all day long.

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