Real Estate Leverage: Compounding Investment Returns
Most real estate investors are missing out on the bulk of potential returns due to one major mistake…
Is real estate leverage your most dangerous enemy or best ally?
Fear resulting from the last bubble is neglecting many investors from realizing their full potential and greater returns by snubbing real estate leverage.
Many are afraid to use real estate leverage, as taking on increasing debt is associated with bad business practices. However, not all borrowing is bad. In reality, it’s an investors’ best friend and tool. Used well, real estate leverage can make all the difference in returns, success, lifestyle and ultimately financial freedom. In addition, attracting a private money lender has never been easier.
Paying cash, keeping down debt and refusing to take on overhead can be smart. Subsequently, it can seriously diminish returns, cap growth and permanently cripple top end potential!
Compare paying $800k cash for a property, putting in $150k in repairs and walking away with $50k in profit after flipping the house versus diversification and using leverage.
Consider the interest and returns on that can be compounded again and again over time, adding years of additional returns in a matter of weeks. Plus, this doesn’t even discuss the advantages diversification and leverage has for liability protection and preserving wealth.
Embrace leverage; reach your full potential!