Leverage is essential

You’ll never make the big bucks out of property unless you leverage (we think)

But surprisingly many property investors still tell us it’s better to pay cash for property and simply take the net income.

Leverage fact …

You can buy a property for $150,000 cash and earn 8.2% OR buy the same property with a Fannie Mae investment loan and earn 16.2% (or 22.9% IRR)

To see exactly how this works go here to our ROI calculations 

More fun with numbers:

Is it possible to safely earn 100% a year on an investment?

Check this out …  

You buy a fridge for a $1000 cash, and at the end of the month sell the fridge for $1100 and make $100 profit

Next month you do it again and make another $100

At the end of the year you’ve done this 12 times and made $1200 with your $1000 investment.

Summary: invested $1000 and made $1200, what’s the ROI? 

Clue: it’s more than 100%