Updated over 4 years ago on . Most recent reply
Leveraging real estate
Can someone explain to me in depth what leveraging is, and how it works?
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Joe Villeneuve
#5 All Forums Contributor
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#5 All Forums Contributor
- Plymouth, MI
Leveraging gives you the ability to buy a property where the property value (purchase price) is 5 times the down payment (cash you have). The other 80% is a loan/mortgage that you pay back over time (usually 30 years). These payments are made monthly, and include interest charges (the cost to you for the lender selling you that extra 80%).