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Why Leverage? 1. Higher priced property generally provides a greater return for the same risk. 2. In today's lower interest environment, there is a 2% or more benefit between the ROI and the cost of money. 3. Property Appreciation is greater on each invested dollar. If we assume a single investor with $600,000 to invest could choose to 1) pay cash for the real estate investment or 2) join with 4 other like-minded investors, the following expected comparison would take place.
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