Is is better to buy investment property with cash or a mortgage? Check out the thoughts of Chris Joseph, an eHow.com contributor for reasons why it might be.
Prospective real estate investors may choose to purchase a property in cash instead of taking out a mortgage. According to the SmartMoney website, as many as 60 percent of investors were using cash to purchase second properties as of 2011. Although using cash may deplete financial reserves, it does offer a number of advantages for potential investors.
Find great investment and recreational properties BuyWisconsinLand.com
Usually one would pay cash to have a quick close and reduce or eliminate closing costs. But, you would be wise to seek a financial advisor to provide all the details to better serve your particular situation.
ReplyDeleteThe benefits in buying the property in cash is that
ReplyDeletebuyer does not need 30 or 45 days to close in obtaining a loan after home inspection and other contingencies
also No mortgage payment, and No restrictions on title transfer due to underlying loan.