[quote=threadkiller]I for one have a hard time imagining why anyone, particularly the rich, would want to pay cash[/quote]In addition to what EconProf said, there are many reasons why investors would pay cash, even with credit being as cheap as it is today:
(1) In some regions of the country where the rent/price ratio is high, houses are so cheap that after you put 25% down, the loan comes to less than $50K, and lenders seldom want to bother with such micro loans.
(2) The FHA guidelines (that commercial banks such as BofA or WF use) stipulate that investors can’t finance more than four properties.
(3) Underwriting guidelines are so ridiculously strict nowadays, that for small loan amounts some investors end up paying cash rather than having to deal with all the red tape.