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Leverage is a very common term
in real estate investing, but like an
iceberg, 90% of what leverage means
is below the surface. Once I realized
that there were many different types of
leverage, I saw the true power of how
I could change the real estate investing
industry for the better and make my
life more fulfilling in the process. I’ve
set out to change real estate investing
for the masses and won’t stop until I’ve
changed lives for the better.
Most commonly, those using the term,
‘Leverage,’ are referring to, ‘Financial
Leverage’. True, real estate would not
be nearly the opportunity it is without
the ability to use debt. If real estate
investors couldn’t borrow money to do
deals, very few investors would exist.
Even those that refer to themselves as,
“Cash Buyers” are generally borrowing
the money from somewhere (i.e. using
Leverage).
Financial leverage is critical for real
estate investors, but to be successful as
a real estate investor, it’s crucial that
you use many other forms of Leverage.
Before we go much further, let’s look at
a common meaning of ‘Leverage’.