I am starting a new path for my financial future and freedom and I am stuck. How do I know if its better to pay cash for a property or put only 20% down and purchase multiple properties? I still have a full time job to focus on as well.
Welcome @Account Closed !
Congrats on your new path for financial freedom! You always have options so don't feel stuck.
The question depends on many things:
- If you have "Gods Money" then cash is king. Answer this, is it better to have debt or no debt? (A real estate individual in my area sits on a few hundred million dollars, he can afford to pay cash for all properties, and he gets great deals because of it)
- If you're like us normal people (net worth not in the multi millions, yet;) you want to leverage your money. So your second option would be "better" if you want the most return for you capital. You will want to have a higher tolerance for debt because you made a promise to pay someone back so if someone doesn't pay rent you are still responsible.
But before we get into all that, let me ask:
- Do you have a primary residence? (If not, a good way to get started is house hacking)
- Do you know what you want yet? Is it a certain number of properties that cash flow 1-200 a month? (Identify this and it will help guide you)
- Have you been listening to the podcasts and reading books? (Knowledge is power, and there is plenty of POWER here!)
Best of luck Brian!
Thanks for the insight. I do own my home and I will be using a trust acct to purchase properties. I have begun to listen to podcasts and am starting to read the books.
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