- Jason DParticipant@jasondras80Join Date: 2019Post Count: 24
The most important advantage of real estate investing is LEVERAGE! It is the use of borrowed capital to increase the potential return of an investment. In real estate transactions, leverage occurs when a mortgage is used to reduce the amount of investor capital required to purchase a property.BennyModerator@bennyJoin Date: 2002Post Count: 1,416
Hmm, would I say this?
The most important advantage of real estate investing is LEVERAGE!
To be sure, leverage is a very useful tool – so long as we remember that leverage works in two directions (as well as leveraging our available dollars to purchase a more valuable property, it also magnifies any LOSSES should things turn bad). Leverage is useful, but it can be dangerous too.
To me, the most important advantage is the investor’s education, thus minimising risk while growing their investing options.