Word of the day: Leverage
In finance, leverage (or gearing) is using given resources in such a way that the potential positive or negative outcome is magnified. It generally refers to using borrowed funds, or debt, so as to attempt to increase the returns to equity. -Wikipedia
Leveraging is such a great tool and it enables use to do more with less money. The Great thing in real estate is that we are able to use other people's money to buy real estate. The banks love to give us there money because they know that the asset will grow/appreciate, plus if you default they have something to cover themselves with. It is hard to lend money for a business idea or a certain stock that you think will do well, but to lend money from a bank for a real estate deal is simple.
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