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Practice English Speaking&Listening with: Paying Cash vs Using Leverage in Real Estate Investing

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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 cashflow.

So two bank loans, two properties, two rental incomes, two tenants, two different properties

completely that will allow your cashflow 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 cashflow 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 veterans 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 friends and 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 point 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

me talk about the numbers and how they're going to make sense for you.

Catch you on the other side.

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