The Magic of Leverage: Use Carefully to Accelerate Your Gains - Financial Freedom, #12 - E-book - ePub

Leverage is a double-edged sword; it can elevate your gains or magnify your losses. Thus, using leverage carefully is necessary to reap its benefits. Leverage is the debt we use to buy income-producing assets. The most common form of leverage is taking a mortgage on a home. Because leverage can allow you to buy many more assets, investors can get carried away during the good times. However, if the stock market crashes or people stop paying rent, you'll still owe your loan payments to the bank. A good practice is using leverage, paying off the loan, keeping the assets, and repeating the process.
This method is the safest way to build a stable of income-producing assets. Good Luck!