Mortgage versus cash I am thinking of buying an investment property with cash versus going with a financing. The reason I am doing that is that I need the revenue right away and that taking 50 % or more financing would eat the yearly revenue I would get from that investment. I also not sure I am qualified for a commercial mortgage because my current business has been loosing money for 2 or 3... [more]
Mortgage versus cash
I am thinking of buying an investment property with cash versus going with a financing. The reason I am doing that is that I need the revenue right away and that taking 50 % or more financing would eat the yearly revenue I would get from that investment.
I also not sure I am qualified for a commercial mortgage because my current business has been loosing money for 2 or 3 years.
What are the disadvantages of paying cash only here?
I am hoping that this property bringing me an income of 100'000 net will also help me get future mortgages for future investments.
Does that make sense?
Of course taking a mortgage would allow me to buy three properties in one shot instead of one with the price I am willing to pay cash but
I am not sure I am ready this time - since it is my first investment property anyway - to get three mortgages for three new investments.
Just need advises here.
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Response by affrench
almost 16 years ago
Posts: 34
Member since: Mar 2008
Do your research StJohn. I am just beginning my education in real estate investment and a friend recommended Dr. Gary W Eldred's "Investing in Real Estate". It goes through the ins and outs and the ups and downs a novice (and experienced)real estate investor should think about before diving in. Good luck and keep us informed if you can.
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Response by dwell
almost 16 years ago
Posts: 2341
Member since: Jul 2008
StJohn,
Speak to your accountant about this.
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Response by drdrd
almost 16 years ago
Posts: 1905
Member since: Apr 2007
"I need the revenue right away" makes me nervous for you. LOOK BEFORE YOU LEAP - whoa, that's an old one but oh so true. Proceed with caution & do lots of research so that you don't find yourself in a worse situation than you are now. Best of luck to you.
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Do your research StJohn. I am just beginning my education in real estate investment and a friend recommended Dr. Gary W Eldred's "Investing in Real Estate". It goes through the ins and outs and the ups and downs a novice (and experienced)real estate investor should think about before diving in. Good luck and keep us informed if you can.
StJohn,
Speak to your accountant about this.
"I need the revenue right away" makes me nervous for you. LOOK BEFORE YOU LEAP - whoa, that's an old one but oh so true. Proceed with caution & do lots of research so that you don't find yourself in a worse situation than you are now. Best of luck to you.