Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
Followed Discussions Followed Categories Followed People Followed Locations
Private Lending & Conventional Mortgage Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 9 years ago on . Most recent reply

User Stats

12
Posts
4
Votes
Maarten Stevens
  • Real Estate Professional
  • Currently Abroad, Currently Abroad
4
Votes |
12
Posts

Leverage or cash?

Maarten Stevens
  • Real Estate Professional
  • Currently Abroad, Currently Abroad
Posted
So I just bought a multiplex property and currently arranging financing. I'm in the lucky position that I can raise the cash to buy the property using my own money, if I sell most of my stock portfolio. I just don't know whether to leverage the current property now, or to buy the property outright. This leaves me with 2 options, not sure what you guys would recommend: 1. Buy the place outright using cash (sell stocks). For any next purchase I would then go back to the bank to raise a loan on the current property to get the liquidity to fund part of the next property. 2. Leverage 30% of the current property (don't sell stocks), and use the stock portfolio whenever I'm able to find a next property together with increasing the loan on the current property. You must realize it has been difficult for me to find places, and I'm not sure how long it will take to find my next purchase (a year, longer?)

Loading replies...