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She found a hidden gem
These weren’t treasure maps
This property was 
vandalized and neglected
NASTY
The plan was to quickly 
acquire the property
Add a suite to the basement 
and flip to her rental 
portfolio for profit
There were challenges
Other investors 
could close faster
The bank was 
reluctant to finance
It would take a down 
payment of 25%
Time Sensitive Bank was reluctant 25% Down Payment 
What she did…
She used debt to secure an opportunity 
to make a profit 
SMART Leverage
Found a lender 
that specializes in 
property flips
$65k Savings
New Appraisal Value 
$400k 
Post $19,000 renovation
Using Smart Leverage she made a 
profit, even with a higher cost of 
borrowing. 
$65k 
Total Profit
Regardless of the cost of borrowing. 
You make 
ZERO Return
On the property that you 
NEVER Purchase
How a Real Estate Investor profited $65k with a 3.33% down payment
How a Real Estate Investor profited $65k with a 3.33% down payment
How a Real Estate Investor profited $65k with a 3.33% down payment
How a Real Estate Investor profited $65k with a 3.33% down payment
How a Real Estate Investor profited $65k with a 3.33% down payment
How a Real Estate Investor profited $65k with a 3.33% down payment
How a Real Estate Investor profited $65k with a 3.33% down payment
How a Real Estate Investor profited $65k with a 3.33% down payment
How a Real Estate Investor profited $65k with a 3.33% down payment
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How a Real Estate Investor profited $65k with a 3.33% down payment

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Here’s my definition of smart leverage: it’s debt that secures you an opportunity to make a profit. By definition, profitability means your cost of the debt is taken into account.  

If you only look to traditional financing you are going to miss profitable opportunities. You may even miss being more profitable at the deals you do at lower rates.

Smart leverage that makes you profit is smart regardless of the total cost of that leverage – Now believe me, a person can use leverage poorly – leverage that doesn’t make you money but sucks it away, and doesn’t serve you or your family wisely. It’s not the leverage or the mortgage that’s bad, it’s how its used, and leverage can be used wisely to make you profits.

Why the higher cost of debt can be the smarter leverage!

Published in: Real Estate
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How a Real Estate Investor profited $65k with a 3.33% down payment

  1. 1. She found a hidden gem
  2. 2. These weren’t treasure maps
  3. 3. This property was vandalized and neglected
  4. 4. NASTY
  5. 5. The plan was to quickly acquire the property
  6. 6. Add a suite to the basement and flip to her rental portfolio for profit
  7. 7. There were challenges
  8. 8. Other investors could close faster
  9. 9. The bank was reluctant to finance
  10. 10. It would take a down payment of 25%
  11. 11. Time Sensitive Bank was reluctant 25% Down Payment What she did…
  12. 12. She used debt to secure an opportunity to make a profit SMART Leverage
  13. 13. Found a lender that specializes in property flips
  14. 14. $65k Savings
  15. 15. New Appraisal Value $400k Post $19,000 renovation
  16. 16. Using Smart Leverage she made a profit, even with a higher cost of borrowing. $65k Total Profit
  17. 17. Regardless of the cost of borrowing. You make ZERO Return
  18. 18. On the property that you NEVER Purchase

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