Real estate ownership usually grants you the benefits of leverage. When you have a mortgage against a piece of real estate, you have only provided a fraction of the cash needed to acquire that piece of real estate. Yet you gain a majority of the full benefits of real estate ownership! If the home increases in value by 5% in a year lets say, then you gained a 5% gain on the ENTIRE real estate value and not just on the portion that you fully purchased with cash.

This is a very brief description of how real estate investments benefit from leverage! If you ever want to discuss the possibility of real estate ownership, email me at PatrickDixon@KirkandCobb.com, give me a call at 785.221.1362 or fill out the form on my contact page. Thanks!

Disclaimer: I am not an attorney and these opinions are my own.