Encore Episode: Using Leverage to Build Your Portfolio Quickly

ROI Wealth Watch

When you’re just starting to build your real estate portfolio, spending time creating a solid strategy can sometimes be challenging. The question of whether you should use leverage to build your portfolio quickly or avoid the risk of debt and use cash to purchase new properties frequently arises.

On today’s episode, we’re discussing the advantages and risks of using leverage and cash to grow your portfolio, how to mitigate risk when using leverage to purchase new properties, and the importance of finding the right lender when using a self-directed IRA. We also explain the difference between cap rates and cash-on-cash returns, how to calculate each, and how to use your tenant’s monthly payments to pay leveraged mortgages.

“If you use leverage, you’re going to get more return.” - Jared Garfield

In This Episode of ROI Wealth Watch:

• The difference between speculators and investors.
• The importance of finding the right lender when using a self-directed IRA.
• Comparing the advantages and risks when using cash and leverage.
• Mitigating risks when using leverage to grow your portfolio.
• What is Debt Coverage Ratio and the numbers the banks consider when working with property investors.
• What is Cap Rate versus Cash-on-Cash Return and how to calculate each.

Resources Mentioned:

• Gorilla Capital
• Lima One Capital

Wealth Watch Words of Wisdom:

1. You can exponentially grow your portfolio by using leverage.
2. Be sure to pick the right markets to minimize your risk. Watch your Debt Coverage Ratio to limit the risks of borrowing.
3. Know the numbers. Understand how to calculate Cap Rates and Cash-on-Cash Returns and how they compare.

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Help Others Buy Real Estate in the Right Markets at the Right Times!

Thanks for tuning into today’s episode of the ROI Wealth Watch podcast with Jared Garfield - your resource for learning to buy real estate in the right markets at the right times. If you enjoyed this episode, head over to iTunes to leave us a rating and review. Subscribe to the show so you never miss an episode, and visit our website to grab your free gifts!

And, if you’re looking for the best turnkey rental properties to invest and renovate to maximize your real estate portfolio, visit the Rich Life Real Estate website to view turnkey rental opportunities or speak with an investment advisor for more information.