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Keller Williams Delaware Presentation - Leverage Kills
Leverage can be a very powerful tool in the financial world. It has the ability to amplify money and add quite a bit of buying power. Just like it can expand a business rapidly, it can also collapse one. Many investors lost their portfolios in the 2008 crash due to over leverage. Leverage on a portfolio will reduce cash flow and when there are too many properties with debt servicing and a market that doesn't allow the person to refi out, the person will have a cash crunch and have to acquire money from other sources to sustain their portfolio.
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