Is paying cash for real estate really the safest financial move?

In this episode, Dat Nguyen and Richard Riva break down the opportunity cost of tying up your own capital and explain why sophisticated investors often choose to finance real estate even when they have enough cash to buy outright.

Using real-world examples, they compare paying cash versus using a mortgage, discuss how investment returns can offset borrowing costs, and explain why your own capital may actually be your most expensive source of money.

They also cover:

• Paying cash vs. financing a real estate purchase
• The opportunity cost of using your own money
• How wealthy investors think about leverage
• Putting 10% down vs. 20% down on a primary residence
• When paying PMI may make financial sense
• Keeping cash liquid versus locking it into home equity
• Cash flow considerations for investment properties
• When leverage becomes too risky
• Why discipline matters if you choose to invest the difference

The goal isn’t to convince you that debt is always better. It’s to help you ask a better question:

Is your capital working harder than your debt is costing you?

If you're considering buying a home, purchasing investment property, or deciding how much cash to put into real estate, Dat and Richard can help you run the numbers and evaluate the strategy that fits your financial situation.

Learn more at https://newportmastermindcollective.org

Richard Riva is a wealth advisor with Wealth Management Solutions and can be found at www.wms-llc.com.

Connect with Dat Nguyen at dat@elendingteam.com