Leverage or Not? From those who’ve done both

1 Reply

I’d like to hear from those 40+ years of age who’ve paid down principal fast vs those who used leverage and whether they’re happy they chose that route or they regret it. Hindsight is always 20/20 and I’d like the hear their opinion as to why they chose their route and if they’d do anything differently. Thanks in advance!

I'm not over 40, but I think it really comes down to your "why" on investing. Do you want scalability or security? Leverage will allow you to scale, but nothing is more secure than a free a clear property. Chances are you want a bit of both, so depending on your risk tolerance, if your portfolio is at least at 75% LTV with adequate reserves, I wouldn't be too quick to pay down properties at a young age considering historically low fixed-rate financing available today.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you