Epic Real Estate Investing - Paying Cash vs Using Leverage in Real Estate Investing | 923

Episode Date: February 9, 2020

Mercedes, our Turnkey Girl, explains the difference between paying cash and maximizing leverage for your real estate investing and where to find the funds to do so. Tune in and find out more! Learn more about your ad choices. Visit megaphone.fm/adchoices

This is Terrio Media. Success in real estate has nothing to do with shiny objects. It has everything to do with mastering the basics. The three pillars of real estate investing. Attract, convert, exit. Matt Terrio has been helping real estate investors do just that for more than a decade now. If you want to make money in real estate, keep listening. If you want it faster, visit R-E-I-Aase.com.

So, you have a little bit of cash and you're about to buy your first investment property. Wait, should you use all of your money or should you get a loan? Hi, I'm Mercedes-Torres. I help busy professionals acquire passive income through real estate investing so they can retire even faster. So let's say you have $50,000 from an old 401k or maybe an IRA and it's sitting there stagnant. What to do? Do you buy one property or do you get a bank loan and buy two properties? Let me tell you what I do. I maximize leverage. I buy properties using bank loans so that I can diversify not only my portfolio, but I can multiply my cash flow. So two bank loans, two properties,

two rental incomes, two tenants, two different properties completely that will allow you, your cash flow not only to grow, but think about the tax benefits that you're getting with two properties as opposed to just one. So the real question is, how do you maximize $50,000 that you may have available in an old 401k plan? So let me show you how it's done. First, find money that's available in a savings account, an old 401k, or an idle IRA. Find money that's not really working hard for you and put your money to work. Putting your money to work in multiple properties using leverage will allow you the ability to cash flow even more

that ultimately would lead to financial freedom. Second, find the best loan available for you. If you're a veteran, for example, consider a veteran's loan. If you're a teacher, consider your credit union. If you work for a bank, perhaps your bank is going to give you a friend's family term. Find money that is cheapest to you that will allow you to maximize your leverage.

Cheaper money is going to result in more money in your pocket. Third, and most important, always do the math. Figure out is one property for that $50,000 we were talking about going to produce a higher ROI for you? Or is leveraging a bank loan to maximize that $50,000 going to be a better play. Numbers don't lie. Do your math, and you will see what is going to produce a better return for you. But the next question is, what numbers are the ones that you should be looking at? What numbers are important to you?

I go over this stuff on our podcast all the time. What you're going to want to do next is listen to me on our podcast. I go over this on Turnkey Tuesdays. So go to Epic Real Estate Investing and listen to, to me, talk about the numbers and how they're going to make sense for you. Catch you on the inside. This podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.