Even if you have the cash, debt is a very convenient way to mitigate risk.  I've watched many investors in the last couple years successfully mitigate risk with debt in the bottom of the real-estate market and they are now cash rich millionaires.

As with any investment, you have to weigh the risk.

$7000 dollars is a very small scale in comparison, but say you had 1 mil in the bank.  Would you risk the million or borrow from a bank with only 25% down payment?  Your skin in the game is now 250k.  Much more palatable than going all in.