9: Commandment #8: Use Borrowed Money (Leverage Debt Properly To Work For You)
Description
Use as much borrowed money and as little of your own money as possible. Borrowed (mortgage) money can be repaid by the tenants who will move in to your income property! By letting other people’s money work for you, you can reduce your personal risk and become wealthier much faster. (There are also legal protection benefits, since real estate assets with standing debt are much less likely to be pursued if any legal claims arise against a property owner.)
Nuclear weapons have a shocking ability to destroy, yet are also credited for rapidly increasing the “value” of a nation’s sovereignty; this duality is similar with the nature of financial debt. The careless treatment of debt has destroyed a countless number of lives, but leveraging debt responsibly is the necessary and ultimate key to success when it comes to real estate purchases.
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United States
