Leverage and Control: The Power of Real Estate Investing

Josh Perez • January 6, 2025

Why is everyone so obsessed with real estate investing? It’s simple—when done correctly, it’s not just a time-tested and proven way to build wealth, but it also has the potential to accelerate it. Let me explain why, focusing on two key concepts: leverage and control.

"For every 5% in market appreciation on your property, that actually equals a 25% rate of return on your original investment."

Leverage: Your Secret Weapon
Leverage is the cornerstone of real estate investing. When you buy a rental property, you're typically required to put down 20%. This means that to acquire a $500,000 real estate asset, you only need to invest $100,000. Compare that to stocks or mutual funds, where you need to put in the full $100,000 to gain a $100,000 position.

Now, here's where it gets interesting. To earn $25,000 on a $100,000 investment in stocks, you'd need a 25% increase in value. However, with real estate, a 5% market appreciation on your property equates to a 25% return on your initial $100,000 investment due to leverage. That’s the power of leveraging a smaller amount of capital to control a larger asset.


Control: Your Competitive Advantage
Unlike stocks, where you have no influence over their value, real estate allows you to take control and force appreciation. You can make strategic improvements—like finishing a basement, adding a secondary unit, or making home enhancements—that significantly increase your property's value, regardless of market conditions.

This combination of forced appreciation and market appreciation creates a unique and powerful opportunity for building wealth. Real estate investing isn’t just about waiting for the market to go up; it’s about actively enhancing your asset’s value.



Ready to Get Started?
If you're interested in leveraging these strategies to accelerate your wealth-building plan, schedule a call with us. Let’s work together to turn your real estate ambitions into reality.

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Deposit vs. Down Payment: Key Differences for Homebuyers

By Josh Perez • February 18, 2026
When you’re buying a home, two terms often cause confusion: deposit and down payment . While they’re related, they serve very different purposes in the homebuying process. Here’s what you need to know. What Is a Deposit? A deposit is the money you provide when you make an offer on a property. Think of it as a show of good faith that proves you’re serious about purchasing. How it works : Typically, you provide a certified cheque or bank draft that your real estate brokerage holds in trust. If your offer is accepted, the deposit remains in trust until the deal moves forward. If negotiations fall through, the deposit is refunded. Connection to your down payment : Once the sale is finalized, your deposit becomes part of your total down payment. Why it matters : The amount is negotiable, but a larger deposit can make your offer more attractive in a competitive market. Keep in mind, however, that if you back out after conditions are removed, you risk losing your deposit. What Is a Down Payment? Your down payment is the amount you contribute toward the purchase price of your home when securing a mortgage. Minimum requirement : In Canada, the minimum down payment is 5% of the home’s purchase price. Anything less than 20% requires mortgage default insurance. Sources : Down payments can come from your savings, the sale of another property, RRSP withdrawals (through the Home Buyers’ Plan), a gift from family, or even borrowed funds. Example: How They Work Together Imagine you’re buying a $400,000 home with a 10% down payment ($40,000). When you make your offer, you provide a $10,000 deposit . Once conditions are met, that deposit is transferred to your lawyer’s trust account. At closing, you add the remaining $30,000 to complete your full down payment. The lender provides the rest—$360,000—through your mortgage. The Bottom Line Your deposit shows commitment and secures your offer, while your down payment is what makes the mortgage possible. Together, they work hand in hand to get you into your new home. 📞 If you’d like clarity on deposits, down payments, or any other part of the mortgage process, let’s connect. I’d be happy to walk you through it step by step.
Cozy armchair next to a small wooden table with a mug and an open book. Sunlight streams through a window.

Is a 5% Down Payment a Mistake? Here’s the Unpopular Truth.

By Josh Perez • February 15, 2026
Discover why a 5% down payment isn’t always irresponsible. Learn when a low down payment is a smart financial move for Ontario homebuyers and when it’s a risk.