Why Real Estate Is I.D.E.A.L. - “L” = Leverage - Part 5

Then comes the icing on the cake. Not only can you serve people, receive income, write off more than you make, and let the tenants pay down the mortgage as the property increases in value, but you get a huge bonus.    Leverage. Bankers allow the public to borrow 80-90 even 100 percent of the real estate value. Why is that? Because they understand that real estate is safe collateral to lend money against. It has traditionally held its value and is very forgiving in that if it were to drop in value, it is a very slow drift that usually comes back in line quickly.   Contrast that with the stock market. Do you know what the brokerage houses will lend on a stock? Usually 50% of value. That’s 50% leverage in stocks vs. up to 100% in real estate. What do the stockbrokers know? Stocks are risky. Stocks (and bitcoin) can lose huge value quickly and are slow to forgive. Leverage allows you to invest little to none of your own money and control an income-producing asset with excess tax benefits as it grows in value while the user (your tenant) pays off the debt. There ... now go find me something better.   A lot of long-time investors will tell you that the best you can expect from your rental investment portfolio over time is about a 10% return. Well for most of us 10% compounded over many years will do just fine. I’m sure a lot of you wish you could say that about your investments in the stock market. But what they don’t know is -- you can add a system to make it better than average! Timestamps:  0:01 - Introduction - “ Real estate the I.D.E.A.L. investment, the final chapter Leverage”  0:38 - Lou’s wins of the week 4:15 - Today’s give away - Lou’s book: “ Doing Good, While Doing Well”  5:10 - A foundation helps a new member put up money for his down payment to buy his property.  6:42 - L for Leverage - Real Estate is the I.D.E.A.L. Investment 15:02 -  Aug 27th, 28th & 29th - https://www.MillionaireJ