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Funding

Do This Instead of Borrowing Against a Free & Clear Property

So, I get lots of questions about funding. But someone asked me a question recently that actually doesn’t get discussed so often, and I think it’ll make a great lesson.

Hey Moguls, Patrick Riddle here to help you figure out whether it’s a good idea or not to borrow against a property that’s owned free and clear. The reason someone would ask this is because they’re thinking this might be a good avenue to access cash for funding their real estate investing deals.

So, I’ve given this idea some thought, as has my good buddy and fellow investor, JP Moses. Here’s what we’ve come up with…

First of all, if you’ve got a property that’s free and clear, you’re in a great position! Not many people have that. It gives you potential leverage to bring in money.

But my question is this: What specifically would you be borrowing capital for? If it’s for additional deals that you’re doing, I would suggest keeping the free and clear property…


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