Benefit #1 of Investing in Real Estate
Leverage
- Banks will loan 75-80% of the purchase price.
- If you are living in the renal, a bank will give loans all the way to 96.5-100% of the purchase price
- I've sold to those using FHA loans, which only requires 3.5% down
- I've also sold to someone who used a VA loan to buy my duplex, which required 0% down
- Leverage makes it more accessible to invest from requiring less money, which also leads to higher returns and the ability to scale faster and easier.
- The additional benefit is these loans are very long term, up to 30 years. Therefore you are locking into a rate for a long time (which today have been very low)