The pros and cons of leveraging — How to use other people’s money to invest in real estate
Abstract: Investors can make a lot of money by leveraging other people’s money to invest in real estate. But it’s possible to have too much of a good thing, as many are discovering in the wake of the credit crisis. Lower property appraisals, combined with the tightening of loan-to-value ratios, have made cash much harder to come by. This article shows how to avoid overleveraging.