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Updated almost 8 years ago, 01/15/2017

User Stats

34
Posts
7
Votes
Michael Sockwell
  • Woodstock, GA
7
Votes |
34
Posts

How does a leveraged property return a higher return???

Michael Sockwell
  • Woodstock, GA
Posted

Interested in real estate investing looking to do by and holds and some flips and been doing lots of research and listening to lots of bigger pockets podcasts. One thing I can't understand is how much I hear about leveraging properties is better than cash and that it returns higher. I especially hear Brandon turner always pushing leveraging properties and hear him talking about properties only returning $100-$200 after expenses. How is this better than a paid off property netting you a full months rent every month? Hoping to do my first deal this year. New to the site, hungry to learn and any advice is very appreciated. Also not sure how easy it is to get traditional financing on a first investment property when I already have a mortgage on my current home. Interested in the BRRR method but unsure the benefit of netting such a small amount monthly.

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