Buying a house with Cash Vs Financing | Real Estate Investing | EP. 23

Hi guys. Caitlin here, your marketing and communications coordinator for Freedom Real Estate Group and its family of companies. And today I'm here again with Mark Woodring. You guys may have seen him in our past vlog episodes and today's episode is episode number 23. And we're going to be talking about. And when I say we, I mean primarily Mark are going to be talking about the differences between cash and financing on properties. So the first question that I have is what is the difference and or advantage of buying in cash or financing?

Yeah, no worries. It's a great question. We get that a lot. Typically it's just going to come down to buying preferences. Of course, we always want you to speak to your CPA financial advisor as to what makes the best sense for you. But some of the main differences are that when you are purchasing in cash versus financing would be the speed to close. You know, someone who's purchasing that in cash does not have to wait for any sort of lending institution to do their paperwork and can typically close that quicker with cash. Also, you can buy more properties, but you are limited by the amount of cash that you have. So if you only have a certain amount of cash, you can only buy so many properties. Whereas with financing, you might be able to buy more properties for less money, but you're capped at 10 mortgages per person. So again, just follow up with your CPA or whatever. But those are two of the main differences on buying power, I guess, which.

I am learning along with you guys as well. I did not know that either. So that is very interesting to find out. All right, my next question is, are there any financial benefits to one over the other?

Sure, absolutely. So the obvious one is that lending is going to cost more money. You're going to have to pay for an appraisal of the property. You'll be paying interest fees on the mortgage amount that you have. You may even have more closing costs. So it may cost more money up front to get that going. So that would be one of the main differences in financial for cash would be that also some of the things to consider is when you purchase a house in cash, your seasoning period to refinance the house and pull that money or equity that you made in the house is going to be shortened. Whereas if you finance the property, you may have to wait longer to refinance the property, pull it back out, and then continue to use that money to leverage other properties.

Perfect. Sounds great. Well, as normal, we like to keep these vlogs short and sweet. We will be diving into this a little more in our podcast that is called Real Talk, which is Real talk for real estate investors. It's spelled R E I A L talk. And that's all that we have. So we always like to end these with invest smart and live happy. Thanks, guys.