3. Make Money with Leverage
One of the biggest advantages for investing in real estate is the concept of leverage to maximize the total yields and profits from an investment. Under this concept, the investor will use the total amount of money that he or she has to purchase multiple properties by using the money for a down payment or leverage that will maximize the potential return. This method is proven to return a larger profit as long as the property that is purchased has god rental yields. Using leverage to purchase one or more properties does incur greater risk on the part of the investor.