Updated over 9 years ago on . Most recent reply
Do I leverage or not in my 1st self directed Ira deal?
Hi bp,
I am new and like to understand more about leverage or not. I have enough to buy the house outright but wanted to get advice if I should leverage? Are there any risk to leverage? Any advice is much appreciated.
Thanks,Hang
Most Popular Reply
Hi Hang!
The advantage of using leverage would be, you could buy more property if it goes well. If you buy with cash and find out you like it, you would have to do a refinance.
The disadvantage of using leverage? It would increase your cost a little (interest paid). It might also reduce your speed and flexibility. Sometimes a cash offer looks more appealing to the seller.
You are using money from your self directed IRA, so I assume you are "all in". If you can get low cost bank financing, I would go that route.