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How much property can you afford? |
Leverage can be one of the keys to success in real estate investment. It is the use of borrowed capital, such as margin, to increase the potential return of an investment. However, it also comes with greater risk. If an investor uses leverage to make an investment and the investment moves against the investor, his or her loss is much greater amount than it would've been if the investment were not leveraged - leverage magnifies not only gains but also losses.
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