How Do You Leverage Your Real Estate?

When you have a property already, you can often leverage your real estate to buy more properties. Being the owner of a property and paying into it gives you equity in that property. This is important to have in any property that you own.

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The way to leverage one property to buy another one is to take out the value of that equity and use that to pay for a new property.

When you do this multiple times, you can go from having one property to owning a large number of them. When you have a lot of properties, they each bring in an income so that you are able to keep adding to the equity that you have in them. This in turn means that you can buy more properties. Owning more properties means more streams of income and a higher standard of living for you.

Owning more properties is also a hedge against one or more of the properties not bringing in an income or needing repairs. If you have eight properties and one isn’t rented out, you still have income from the other seven. And if one property needs repairs, the income from other properties will pay for them.


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