During this past weekend's episode of our ongoing webinar series on real estate investing, we put the presenter, Russell Gray on the spot.
He had just finished talking about the role of (prudent) leverage in real estate and how it acts as a force-multiplier for:
- income received vs income invested
- boosting total return (often by several multiples)
- extracting gained equity and re-investing it to produce more cash flow by purchashing additional property
- mitigating risk (though risk will always be involved)
But, leverage is perhaps the biggest concern Peak Prosperity readers have regarding real estate: If we go through another burst housing bubble price correction, will leverage become a killer?
The answer is nuanced and Russ did a great job addressing it. Here's his answer.
from Peak Prosperity http://bit.ly/2VXTaNs
