Why Common Sense Lending Matters
In the world of real estate, finding the right lender can make all the difference. Recently, I worked with a client who faced a frustrating situation with their bank. Despite being a successful business owner and MBA graduate, they were given some shocking advice: to leave their thriving marketing business for a salaried job just to qualify for a mortgage.
"Work with an experienced and trusted mortgage broker, to find lenders that fit inside your financial picture and not the other way around."
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.

