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)


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