If you can afford to pay all cash to get a good price, then doing this makes a great deal of sense:
Pay cash for your next home or get a mortgage? Some wealthy home buyers are choosing both.
It’s called delayed financing, in which buyers pay cash for a home and then take out a mortgage soon after closing. Rarely used even two years ago, experts say it has picked up over the past 12 months.
“It was an extremely unusual phenomenon, but it’s going on quite a bit now,” says Jack McCabe, an independent housing analyst in Deerfield Beach, Fla.
The practice is growing mostly in affluent coastal housing markets, including New York and San Francisco.
Of course, there's no reason it can't also be used by landlords to get good deals/prices while remaining more liquid.
If you are an investor in 1-4 unit properties in Arizona, California, Nevada, Oregon, Utah, or Washington, please do the financially responsible thing and make sure you have proper Landlord Insurance with PropertyPak™. We love focusing on real estate and the economy in general, but we are also here to serve your insurance needs.
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