help me understand this

[Stacey Jones]

this is what i have never understood,  i have more than enough money to buy a propety for cash.  so i am convinced to "use other peoples money" or to get a loan to leverage your money.  I sorta get that.  What I dont understand is why lenders ask and require so much information in order to get a loan that i dont need anyway.  The first lender who can explain this to me with any sort of clarity will get my business.  Whenever I fill out a loan application (who say the process is easy) after the umptenth document upload I remind myself of why i deal in cash.

[Jake Yuskaitis]

Quote from @Kevin Sobilo:

Quote from @Jules Aton:

I also understand that leverage is a powerful tool however for me it largely depends on my current AA and how that looks RE vs TSM index funds. I'm also adverse to jumping through the hoops of financing when my credit and net worth are quite respectable. I do take a second look if rates are 5% or less. If 5% or greater I'm paying cash which generally buys me a better chance at getting the property and a few bucks off asking price. 

In many cases interest rate is IRRELEVANT! 

I would buy a good deal at 20% interest every day of the week. If you can make positive cash-flow at 20% interest imagine what the deal will look like in 5, 10, 20 years when you refi to lower rates and possibly re-amortize. 

Investing isn't about just today, its about the entirety of your time horizon for that investment. 

The old adage is you "marry the property, but you date the rate"

 rate is never irrelevant. it's one of the most important factors of the loan.