# You should always use debt when buying a property even if you have enough cash to pay for it outrigh

## Метаданные

- **Канал:** The Kwak Brothers
- **YouTube:** https://www.youtube.com/watch?v=WB4pOQ9EusA
- **Дата:** 10.06.2026
- **Длительность:** 1:14
- **Просмотры:** 931

## Описание

You should always use debt when buying a property even if you have enough cash to pay for it outright. The idea is to preserve liquidity and keep capital available for future deals, improvements, and emergencies instead of tying everything up in a single asset. In real estate, conservative leverage (often around 60–65% loan-to-value) can be a strategic way to build wealth because the property’s income helps service the debt while your cash continues working elsewhere.

Not all debt is bad — when used intentionally, leverage becomes a tool for scaling investments rather than limiting them. The key is balancing risk, maintaining reserves, and using financing to expand opportunity instead of draining your capital.

#realestate #investing #personalfinance #wealthbuilding #debt #leverage #financialeducation #money #investingtips #finance #cashflow #mindset #financialfreedom #propertyinvestment #short

## Содержание

### [0:00](https://www.youtube.com/watch?v=WB4pOQ9EusA) Segment 1 (00:00 - 01:00)

I have a million dollars in cash, and the property is also a million dollars. Should I buy it out with cash, or should I use debt? — You should always use debt, no matter how much cash you have. So, if you use all your capital, you have no more capital to do future deals. And while I'm a big fan of being conservative with debt, I would borrow 60 to 65% of the purchase price and keep the cash in the bank for a future deal. Also, to have a little reserves in case something goes wrong, or you want to make an improvement to the property. So, cash is your friend in that case. Don't use it all. Get — Yeah, I actually would agree. Not all debt is evil. If the debt is being used as a tool to help you build wealth, great. Now, in this scenario, when you buy a property such as an investment property, the income being generated from that property ultimately is what is used to pay the financing. And I like the fact that he's very conservative when it comes to his loan-to-value, and that is how much debt are you taking on relative to the value of the property. 60-65% is great. It's very conservative. And when given to use leverage or financing to purchase a property, I would almost always use financing to purchase an investment property. And that's what we did with a 24-unit apartment building we just recently acquired. And we have a full video on our YouTube channel that breaks down how we were able to do that. So, definitely go check it out.

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*Источник: https://ekstraktznaniy.ru/video/53168*