One of the fundamental reasons why people invest in real estate is because it’s an asset that can be leveraged. That means that you can borrow money from someone else to buy it, and also that you can borrow money against it. Using leverage give you the potential to exponentially increase your profits (and the risks), but it’s why 90% of the world’s millionaires did it with real estate. It’s also why real estate is leading provider of net wealth for most Canadians.
It’s easiest to explain this with some slides and lots of you will be well familiar with these numbers. I’ve picked numbers that make for easy comparisons but the principle applies to million-dollar properties as well as $100,000 ones.
For the REIN members out there, these slides can be downloaded from slideshare (I’m chris_d)and you’re welcome to use them in your presentations. The only requirements are you credit me and that you don’t start changing things around. (Yes, that means you have to leave the www.chrisdavies.ca credit on them unless you ask for permission.) You can read the details of my copyright policy on my legal page. I use a Creative Commons Attribution/NoDerivs license, and to explain more I’m going to share a great slideshow from them about it.
One of the primary reasons for this blog is to share resources, experiences and tips with other real estate experts, investors and all those interested in how I help other people build long term wealth. I encourage everyone who reads to share however they can. Play with slideshare, write a guest blog post, or just help someone out.