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Some simple slides to illustrate the power of leverage in real estate investment. One of many small tools I'm developing for investors to use at www.chrisdavies.ca. Feel free to use this deck, but please credit me and link back where appropriate.
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www.chrisdavies.ca
Leverage in Real Estate
www.chrisdavies.ca
Lev-er-age:
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
www.chrisdavies.ca
Purchase Price $100,000
www.chrisdavies.ca
Purchase Price $100,000
Cash $100,000
www.chrisdavies.ca
Purchase Price $100,000
Cash $100,000
Hold for 5 Years at 5% growth
www.chrisdavies.ca
Purchase Price $100,000
Cash $100,000
Value$125,000
www.chrisdavies.ca
Purchase Price $100,000
Cash $100,000
Value$125,000
Profit $ 25,000
www.chrisdavies.ca
Purchase Price $100,000
Cash $100,000
Value$125,000
Profit $ 25,000
Return on Investment
25%
www.chrisdavies.ca
Purchase Price $100,000
www.chrisdavies.ca
Purchase Price $100,000
Cash $ 25,000
www.chrisdavies.ca
Purchase Price $100,000
Cash $ 25,000
Hold for 5 Years at 5% growth
www.chrisdavies.ca
Purchase Price $100,000
Cash $ 25,000
Value$125,000
www.chrisdavies.ca
Purchase Price $100,000
Cash $ 25,000
Value$125,000
Profit $ 25,000
www.chrisdavies.ca
Purchase Price $100,000
Cash $ 25,000
Value$125,000
Profit $ 25,000
Return on Investment
100%
