10: Deep Dive: Leverage
In this episode, we challenge conventional financial wisdom by discussing the essential role of leveraging other people's money in building wealth. We draw parallels between the principles of personal finance and investing. I also share my personal journey from overcoming consumer debt to investing in real estate, highlighting the significance of using leverage as a tool to maximize financial outcomes. We also touch on the historical and cultural perspectives on debt, showcasing how attitudes towards it have evolved over time. In our conversation, we also examine various financing options available for small business owners and real estate investors. From the allure of 0% interest business credit cards to the stability of 30-year conventional mortgages, we cover the risks and benefits associated with each option. We emphasize the importance of responsible debt management and financial preparedness, offering practical advice such as setting aside funds for vacancies and maintenance. As we wrap up, we encourage you to stay tuned for future discussions, including an exciting episode on tax benefits.