leverage

Real Estate Investing

Exploring Leverage: All Things Begin Equal – Sorry, But They’re Anything But Equal

by Jeff Brown | October 11, 2011
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First, let’s talk leverage. Better yet, let’s talk about the real definition. Hint: It’s not about down payment, not even close. In my experience, the vast majority of investors would say that, all things being equal, (A punch line to a bad joke if ever there was one.) a 10% down payment is a far [...]

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Interest Rates

Real Estate Investors – Are You a Bug In Search of a Windshield?

by Jeff Brown | July 20, 2010

I’ve been that bug on the windshield — three times. Only once was it due to outside forces — a politically powerful county supervisor wanted nobody in his fiefdom to prosper but him. We were dead in the water from the get-go. A lesson learned. The other times were due to me defying what I’ve [...]

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Blogs

Leverage: Friend or Foe?

by Richard Warren | February 9, 2009

On the surface, real estate is a terrible investment. With rental properties you have to deal with tenants, vacancies, maintenance and repair, insurance, taxes and so on. It is definitely high maintenance when compared to stocks, bonds or other investments. The rate of return isn’t so great either. If you pay $100,000 for a property [...]

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Blogs

A New Buzzword: Deleveraging

by Richard Warren | November 3, 2008

It wasn’t that long ago that people were touting the extraordinary power of leverage. Use as little as possible to control as much as possible. Leverage was used in business and especially in real estate. You were considered an amateur if you put down 20% to buy a property, 5% and even 0% down became [...]

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