Skip to main content
No. of Recommendations: 0
Mark said - There are other advantages, such as a very favorable tax status, possibility of blistering appreciation, "pride of home/small business ownership", etc. But the main reason I invest in RE is LEVERAGE.


Presumably you don't really mean you do this purely for "leverage", rather for the extraordinary returns that leverage can generate. In your view and experience - returns that decimate the less risky ruturns available via REIT's.

Leverage is a two edged sword, as they say - it can swing bably against you in cases of vacancy and/or negative cash flow.

You reference returns of "infinity" which indicates down payments of zero followed by positive cash flow. Do you consider yourself to be in a unique market or is this achievable in any market? Let me guess, your tenants are young polynesian women who like to prepay rent and do home repairs and yard maintenance as favored hobbies... 11
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.