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.
"I want thank you for the excellent service I received from Best Transaction Funding.The quick response I received from your company from the beginning of the transaction and to the end was unbelievable. I also want to give a special compliment to you as well. You went to great lengths to keep me informed and gave my title company all the information they needed to complete a successful closing. I cannot express how thankful I am. Such service builds great working relationships. I will definitely recommend Best Transaction Funding to all my fellow investors. Thank You."
- Frank Olaitan, Real Estate Investor, MD
"I can't thank you and your company enough for providing funding for our latest project, and right at the last minute. You came through with funding in less than 24 hours and coordinated with the closing agent and attorneys like you had been involved with our project the entire way. I'll know exactly where to call for the funding we'll need for our next project."
- Dave Pricken, Real Estate Investor, NJ
"Thank you so much! I just had a talk with our Realtor on both properties and told him amazing things about your company!... Normally I rehab the houses and re resells them. I just don't have the patience for that work anymore. This [transactional funding] is such a better way for me and less stress."
- Steven Kupecz, Real Estate Investor, TN
"We want to thank you for the exceptional customer service you provided. No one comes close. We had contacted a competitor the same time we contacted your company. Your company responded with in a few minutes while the competitor has yet to respond weeks later even after multiple phone calls and emails. Thanks again for the unmatched customer service."
"We had looked into several transaction lenders for a couple properties we were trying to flip. Your company was the most responsive and had the best pricing. Even though we had logistics issues with the B/C lender, your company acted very professionally and handled our requests beyond our expectations."
"Thank you for your commitment to an excellent customer experience."
- Phoenix Properties, LLC, Ronald Destefani, Investor, PA
"I was studying on how transactional funding works and you guys had the best and most thorough explanations posted so I could fully understand the details in back to back closing. I'd already started setting everything up but your video confirmed that I'm on the right track."
- La'Donna Turnipseed-Scott, Investor, LA
"....a few months back, I happened upon a video, on your site, regarding the use of transactional funding with Hud properties; and I found myself replaying the video over and over because of the value that I saw in the message...it actually explained the process, step-by-step on how to submit a Hud deal by using transactional funding. Once I completed the video, my initial response was to take immediate action by duplicating what I had learned from the video into real time. So I did some research on properties in a market where I knew I had buyers; and put together a hud deal. I then located a realtor able and willing to submit my bid online and within a couple of days, to my surprise, received a call telling me that I had won – my very 1st Hud bid."
"To you I say, ”KUDOS to Best Transactional Funding and Thank you for providing the education and services to Real Estate Entrepreneurs like me. Please keep up the good work!'"
- T. A. Davis, Investor, NJ
"You each deserve high marks for your wonderfully quick response time to each of our questions and requests! You hit home runs with us! Your application system was easy to use. Our deal met your qualifications and every time Rob Kozak or any member of Mystic Properties, LLC phoned, we received a "real" person dialing back to speak with us.
Your patience and persistence were exceptional in dealing with our business interests. Thank you for such great customer service! We look forward to working with your staff, again, in the future. We like referring people to you, as us, our team would have missed-out on an excellent earning opportunity.
Your help negotiating with our title company made our back-to-back deal, finally happen. People noticed on settlement day how effectively and efficiently your part of the transaction was organized and executed. Again, thank you for truthfully being the "BEST" at what you do!"
- Diane McAdams, Mystic Properties, LLC, Real Estate Investor, Pennsylvania
"Boy, you guys are impressive! I can’t thank you enough for scrambling and getting my deal done at the last minute like that. You and your team were awesome!"
- Donna Bauer, The NoteBuyer Inc., Real Estate Investor, OH
"Thank you so much for working so diligently with me. Your services really are the "BEST". I look forward to working with you in the near future!"
- Ericka B., Real Estate Investor, CA