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Updated almost 4 years ago on . Most recent reply

La'Terrius Campbell's profile image
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La'Terrius Campbell
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La'Terrius Campbell
19
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General Real Estate Investing

Leveraging real estate

La'Terrius Campbell
Posted

Can someone explain to me in depth what leveraging is, and how it works?

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Joe Villeneuve
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Joe Villeneuve
#4 All Forums Contributor
  • Plymouth, MI
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Leveraging gives you the ability to buy a property where the property value (purchase price) is 5 times the down payment (cash you have).  The other 80% is a loan/mortgage that you pay back over time (usually 30 years).  These payments are made monthly, and include interest charges (the cost to you for the lender selling you that extra 80%).

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