Editing 1course Real Estate (section)

==== Leverage: Amplifying Your Investment Power ====
Real estate allows you to leverage other people's money to increase your investment potential. By using a mortgage, you can control a valuable asset with a relatively small initial investment. For example, a 20% down payment on a $300,000 property is $60,000. However, you control the entire $300,000 asset, and you benefit from the appreciation of the full property value, not just your $60,000 investment.

Consider Mark, who invested $50,000 as a down payment on a $250,000 rental property. The property appreciated to $300,000 in five years. Mark's $50,000 investment grew to $100,000 in equity, demonstrating the power of leverage in real estate investing.