The question stuck in everyone’s head while investing in Real Estate, if I have the money, do I pay it all out in cash at closing to own the house free and clear, or do I take a loan on it?

Are you kidding me? There’s nothing better than owning a property free and clear! You don’t have to worry about paying any of those stupid mortgages, you get ALL of the rent, not just the net profit after all your crazy expenses are paid, and you don’t lose anything when you can't find a renter! It’s just great, isn’t it?

Well, let me ask you a question: if you had $100K, would you rather use that for one house, which will profit you approx. 20% (so you’ll have $120k), or would you rather buy 5 houses with that $100k, which you can sell at a profit of 20% EACH giving you a total profit of 100% ($100K)? I think the answer is quite clear. Now you might ask, “If it's that simple, why doesn’t everyone do it?” to which I answer, as usual, that it all has to do with lack of knowledge.

Now you might ask, “But isn’t debt a BAD thing?” It can be. Isn’t a gun a bad thing? It can be, if you use it wrong, but if you use it to protect yourself it can also be a good thing. So if you use debt the wrong way (i.e. buying things that wont make a profit), it can get you in BIG trouble, but if you use it the right way, by buying assets that will, by themselves, pay back your debt, that’s what we call “Good Debt” and that’s the debt I’m telling you to get into here. You’re buying properties that are going to pay back your debt as well as give you a profit!

So go out, take whatever money you have, pay as many down payments as you can, and, as we mentioned before, rent those out in order to float your payments, then sell them for a profit, with which you’re going to buy bigger and better properties, which you’ll rent out for passive income, also known as “Cashflow”, and retire rich!!