Comments on: Leverage: wanna know the truth? http://www.aridni.com/investing/leverage-wanna-know-the-truth People are cashing in all around you, don't you think it's your turn? Mon, 06 Feb 2012 08:59:37 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Dave Prouhet http://www.aridni.com/investing/leverage-wanna-know-the-truth/comment-page-1#comment-15241 Dave Prouhet Wed, 07 Mar 2007 19:36:09 +0000 http://aridni.com/2006/07/leverage-wanna-know-the-truth/#comment-15241 Katie, Came here because of your carnival listing, but quickly changed gears to real estate investment. From experience I think the real estate game is a bit more complicated than that. For example, with leverage what you really are buying is a spread. That is the difference between what you are paying the bank and what you are getting in rents. (Now flipping is a different story - have to make sure cash flow is there to support holding period.) But I totally agree on the increase in net worth (doesn't count if yo live in it though...). Where do you tend to invest? Dave http://businessadvicedaily.com Katie,

Came here because of your carnival listing, but quickly changed gears to real estate investment.

From experience I think the real estate game is a bit more complicated than that. For example, with leverage what you really are buying is a spread. That is the difference between what you are paying the bank and what you are getting in rents. (Now flipping is a different story – have to make sure cash flow is there to support holding period.) But I totally agree on the increase in net worth (doesn’t count if yo live in it though…).

Where do you tend to invest?

Dave
http://businessadvicedaily.com

]]> By: Aridni » How to Buy Your First House http://www.aridni.com/investing/leverage-wanna-know-the-truth/comment-page-1#comment-10171 Aridni » How to Buy Your First House Mon, 12 Feb 2007 15:23:55 +0000 http://aridni.com/2006/07/leverage-wanna-know-the-truth/#comment-10171 [...] Leverage means that you get to use someone else’s money to invest. The goal is to sell your first house for more than you bought it. To determine your purchase budget, use the standard mortgage formula, the 20/28/36 rule. Down payment of 20% of the purchase price [...] [...] Leverage means that you get to use someone else’s money to invest. The goal is to sell your first house for more than you bought it. To determine your purchase budget, use the standard mortgage formula, the 20/28/36 rule. Down payment of 20% of the purchase price [...]

]]> By: Katie http://www.aridni.com/investing/leverage-wanna-know-the-truth/comment-page-1#comment-1778 Katie Mon, 31 Jul 2006 19:40:36 +0000 http://aridni.com/2006/07/leverage-wanna-know-the-truth/#comment-1778 Thanks for the correction, Trainne. I was hoping to suggest that the best leverage comes from real estate, though my bluntness doesn't express that idea too well. Thanks for the correction, Trainne. I was hoping to suggest that the best leverage comes from real estate, though my bluntness doesn’t express that idea too well.

]]> By: trainneinvestor http://www.aridni.com/investing/leverage-wanna-know-the-truth/comment-page-1#comment-1777 trainneinvestor Mon, 31 Jul 2006 14:59:29 +0000 http://aridni.com/2006/07/leverage-wanna-know-the-truth/#comment-1777 Actually, you can use leverage to buy shares - or just about anything else. The terms will usually be less favourable than buying property but such financing is easy to get. Just ask your broker or your bank. Whether it is wise to use leverage is another matter. Actually, you can use leverage to buy shares – or just about anything else. The terms will usually be less favourable than buying property but such financing is easy to get. Just ask your broker or your bank.

Whether it is wise to use leverage is another matter.

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