What leverage to use for real estate investment? How?
• United States
7 Jan 10
Unfortunately, the word 'leverage' implies you have something of enough value to prop up your end of a deal in order to get a loan, or other subsidization. No doubt, real estate can be a very valuable asset. There are waterfront homes that were priced at $250k 2 years ago in my area. They are sitting empty now and priced around $100k. That is a lot of money. The real estate industry in much of the country has been placed on pause. Flipping houses has become extremely risky due to low volume in the housing market. That isn't to say that buying a home, remodeling, and living in it isn't a great investment. If your credit is good, and you can place a decent down payment it's wonderful to own a home. The whole time you live in the house you gain equity. If you're somewhat handy you can do a lot of renovations yourself. Just remember not to buy more home than you can afford, and always find a good realtor. Good Luck!