Real estate investment is a popular way to diversify your investment portfolio. Mr. Anurag Goel, Director of Goel Ganga Developments, focuses on how leverage enables clever investors to accumulate enormous wealth over time by raising investment return and purchasing power. When real estate values rise, leverage works in your favor, but it can also create losses when values decline. Here’s how it’s done:
- Buy – This procedure includes deciding how to finance your home with cash, money loan, seller financing, or private loans.
- Renovate – Choose the right company to manage the real estate projects on time and within budget.
- Rent– Renting your property is a beautiful strategy to pay your mortgage.
- Refinance -Determine the time you must own the property before refinancing, and then hunt for a lender prepared to lend close to the appraised value.
- Repeat – By combining reflection and critique, you can reimplement the BRRRR approach and be more successful in the future.
With careful preparation and execution, leverage can be a crucial facilitator to enhance buying power, grow wealth, and eventually experience financial freedom as an investor.
Read More: How investors use leverage in real estate to build wealth
