Leverage: Real MATH showing risk vs reward in real estate investing

1.2K views8 months ago1m 30sScore: 85

Lydia Patel

Pricing & Profitability
intermediate
Profitability
Multiple Properties
Revenue Management

Summary

This video analyzes the math behind using leverage to invest in real estate. By comparing buying one property with cash versus buying multiple properties with a down payment, the video highlights how leverage can significantly increase equity gains through appreciation and principal paydown, even with similar initial investments and market conditions. The trade-off, however, is that leverage comes with inherent risk.