Leverage: wanna know the truth?
Make money off of cash that you don’t even have. Leverage is this wonderful ability to borrow a percentage of your investment purchase. You obviously can’t take out a bank loan to buy stock… but real estate is a banger leverage opportunity.
You can buy a $100,000 home with as little as $5,000; the bank finances the other 95% for you in exchange for a specific rate of interest. So you’re making money off of the bank’s cash that you never even had. For this reason, real estate makes a great investment–it usually appreciates over time.
Therefore if you have little money, a real estate investment could be a fantastic way to increase your net worth.