3. Use leverage.
As an investor, you magnify the returns on your investment by borrowing a large part of the purchase price using the bank's money! That is, by limiting the amount of cash you invest, you make your cash go farther. Leverage means using borrowed money to increase equity. And equity-the difference between what the property is worth and the balance owed on the mortgage - is what's important when figuring out whether your dollars are wisely invested.
For More Valuable Real Estate Information visit:
Pat Ogle and The AnnapolisHomes4You Team
Champion Realty, Inc
Past Performance is No Guarantee of the Future!
But What Else Do We Have To Go By?