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Updated almost 14 years ago,
Am I using enough Leverage?
Hey guys,
Like any other investor, I'm always looking for ways to grow. I will share with you a simplified scenario of what I'm doing below and I would absolutely love any feedback from you guys about if I'm using enough leverage, how can I leverage more, etc...
Property 1
Initial Investment/purchase price: 100k
Purchase ARV: 150k
Obtained Hard Money: 95k
Property 2
purchase price: 95k
Purchase ARV: 140k
Obtained Hard money: 90k
Property 3
purchase price: 90k
Purchase ARV: 130k
Obtained Hard Money: 85k
** This stream continues on for another 2-3 properties. I am basically taking out a HML on every property in order to help buy the next since my money is tied up in property 1. I wanted to see if you guys see any room for improvement in regards to leverage so I can grow faster (what we all want!). Thanks in advance!