Cash is King: Why Buying Properties With Your Own Capital Offers Unique Advantages

Something a lot of people say in real estate is, “Cash is king.” What does it mean? Well, for an investor, it means that having funds readily available without debt hanging over your head has a couple of huge advantages. And if cash is the king, cash flow is definitely the queen. One of the reasons people invest in real estate is to get a regular flow of cash going. Investing in real estate with cash is less risky, and since it’s a readily available recourse, it provides flexibility, stability, and basically forms a solid foundation for your portfolio.

The two basic goals of investing are 1) to make sure that what you have isn’t lost and 2) to grow wealth. Putting your cash into real estate typically does just that. Investing is, and always will be, a risk-based approach to making money. People don’t like taking risks, and that simply means most investors look for stability and risk mitigation when investing. Check this out for an awesome stat: The National Association of Realtors’ research on cash sales estimates that about 30 percent of residential sales are pure cash transactions.

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