INVESTING
At its core , leverage is about using available resources smartly to maximise the output . It ’ s a force multiplier and allows you to achieve feats that might seem daunting at first glance . By using leverage , you can optimise time , money , and skills , turning them into catalysts for unprecedented growth and success .
Below are six things you need to keep in mind if you want to succeed in property investment using leverage :
Three Key Leverage Acronyms for Property Investors
1 . OPM – Other People ’ s Money
Very few people become rich without understanding this principle . When you have limited cash or capital and you want to build anything sizeable , it will require external funds . These funds can be obtained through different avenues , including investments from external parties i . e .: - Getting investors or business partners to invest with you in a property or - Securing financing or loans from the bank or other financing institutions .
You could even venture outside the box and obtain OPM through crowdfunding or credit card financing . Using borrowed capital can magnify your potential returns and expand investment opportunities without having to solely rely on your personal funds .
Remember , the bank wants to lend you money to invest in property , and if your structures are right , they will lend you more money than you think !
2 . OPS – Other People ’ s Skills
It takes a lot of skills to build a successful property portfolio .
38 APRIL 2024 Real Estate Investor Magazine