Leverage is the Answer.
What is leverage?
“The use of a small initial investment, credit, or borrowed funds to gain a very high return in relation to one’s investment, to control a much larger investment, or to reduce one’s own liability for any loss.” (Dictionary.com)
Whether it be investing in real estate, which is a tangible asset, or investing in paper or digital assets (such as stocks, FOREX, or the latest craze cryptocurrency), the principle is the same. And, leverage can increase your bottom line faster IF the right investment is chosen.
A person can also leverage their time, money and connections to make a maximum impact and get from point A to point B faster and with less effort. We’ll discuss this after a quick illustration about how leverage can create a windfall… quickly.
Leverage is what catapulted my investment career many years ago, and it was a great learning lesson on appreciation and the leverage of existing capital.
At the time, Southern California was going though an upswing. The markets were appreciating nicely and I knew it was time to get in to leverage my time and resources for maximum profit.
I utilized funds from a recent home refinance to put a down-payment on a four-unit property, which was of fair market value, but a total fixer-upper.
Before I made the offer (beating out several others with a wonderful technique I will disclose in another article), I made sure the property would pay itself off every month from the rents. Important: I also saved some funds from the cash I had to do the work needed on the property. In this particular transaction, we were actually going to be negative every month, yet we decided to proceed.
Thanks to an appreciating market and our diligence in research in finding a value-add property, we soon saw amazing equity. As easy as this sounds, behind the scenes, months of daily work went into this.
To find this diamond of a deal, I had to be on alert for months, scour the internet for deals, drive around my target markets, plus engage in busy work on other deals that went absolutely nowhere.
Hard work is always rewarded, and within 18 months, we were in escrow again selling the same four-unit complex we purchased for $428,000 for a new price of $676,000. We took a $80,000 boot (cash) upon the sale and did a 1031 Exchange on the remaining balance to four multifamily properties out of state.
By investing outside of California, the equity from one single four-unit property was used to LEVERAGE into 24 apartments – 4 four-unit buildings.
So as you see, here are a few examples of how leverage can be used to Maximize your Time, Resources and Funds.
It was wonderful to receive that $80,000 check for my efforts and to go from owning a small complex to a portfolio of properties in two states!
The rewards of LEVERAGE have been duplicated over and over in my life, and now I’m lucky enough to be in a position to give back this and so much other first-hand knowledge that I have accumulated throughout my 20-plus career as a landlord in California and other states.
One of the ways I do this is by publishing REALTY411 (our alternate cover is Real Estate WEALTH), as well as REI Wealth Monthly. When I started 11 years ago, I was a one-woman machine and handled everything: sales, design, marketing, reporting… you name it, I did it!!
Now, I have an international staff and two offices in Santa Barbara County, plus I travel the country hosting LIVE EXPOS!
Last year, we produced 27 events in nine states, which brings me to how YOU can leverage this.
LEVERAGE YOUR TIME WITH US!
REALTY411 IS THE ORIGINAL REALTY INVESTOR MAGAZINE AND EXPO COMPANY
Now that you know the key to going from one level to the next is by catapulting yourself though leverage, I invite you to join me as we grow together at our events.
Without a doubt, I was able to leverage my time due to the amazing knowledge I’ve accumulated from so many years of hosting events, where I learned from some of the most active and successful investors and entrepreneurs around the country!
Our events are COMPLIMENTARY because we truly want to share the day with you and hope to positively impact your life. Be sure to visit REALTY411expo.com, our event website, for our Spring 2018 schedule (or see information below).
By the way, I recently once again, leveraged my resources and connections. My attorney, who is very well connected in Hollywood, introduced me to some award-winning producers and now I’m the executive producer of a TV pilot!?
Talk about the POWER OF LEVERAGE!!!
Let’s see how the Magic of Leverage will work in your life, visit Realty411expo.com or sign up to be a free VIP member at: http://realty411network.com
NEW YEAR, NEW LIFE, NEW PERSPECTIVE.
It’s 2018, and this is our year to LEVERAGE.
Are you ready to take action this year? Do you want to expand your mind, contacts and portfolio?
If so, don’t miss the opportunity to learn with the oldest magazine and expo owned by the same accredited investor since 2007.
We are the ORIGINAL realty investor magazine and expo company. Our sole mission is to expand knowledge and improve the lives of our readers.
And, without a doubt, 2018 is our time (and your time) to LEVERAGE with Minimum Risk & Maximum Reward!
We invite you to join us at one of our five complimentary expos this Spring to learn from investors who have been closing millions of dollars worth of deals, year after year. Talk with national landlords who have investments around the country. Meet like-minded individuals who may end up being future partners.
OUR LEVERAGE EXPOS – SPRING 2018
We Serve Complimentary Breakfast and/or Appetizers Are Available for Early-Bird Guests FOR ALL EXPOS!
START THE YEAR OFF RIGHT WITH SUCCESSFUL, ACTIVE INVESTORS who are Ready to Expedite Growth.