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The Real Estate Experience Sterling White

Apr 27, 2021

Confused or unsure whether to pay cash or to get financing for your real estate deal? Don't know which one is better for a particular deal? In this video, Sterling White discusses the pro's and con's when paying in cash or getting financing for your real estate investment.

One option is not always the best choice for any situation. Learn how to choose based on the information that you will learn here in this video.


00:00 Introduction

01:04 Question: To go with cash or with financing

01:33 Cash pro #1: Cash is more attractive to sellers.

02:26 Cash pro #2: Save on mortgage insurance.

02:51 Cash con #1: Not being able to leverage on cash as much

03:55 Cash con #2: Will take you longer to acquire the next property

04:25 The need for Leverage

04:49 Financing pro #1: Have the ability to buy more properties

07:20 Financing con #1: Higher risk from AMRs (Adjustable Mortgage Rates)

07:40 Tip: Avoid being over-leveraged.

09:18 Abundance Mindset versus Scarcity Mindset

09:31 Financing makes more sense in multi-family investments

09:38 Financing con #2: Most of them have term.

10:24 Summary

12:05 Free guide and case studies - "From Zero To 400 Units"

12:30 Outroduction


Cash pros:

- Cash is more attractive to sellers, hence faster closing.

- Higher cash flow later since there’s no mortgage payment.

- Save on mortgage insurance.

Cash cons:

- Fewer left over cash, hence limited ability in acquiring next properties.

- Takes longer to acquire the next property.

Financing pros:

- Ability to acquire more properties with financing, compared to buying just a single property with cash.

Financing cons:

- Mortgage process can be complex and stressful.

- Exposure to higher risk (when doing adjustable mortgage).

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