Leveraging Debt in Real Estate – Smart Move or Too Risky?
I’ve been exploring different ways to grow my real estate portfolio, and leverage keeps coming up as a popular strategy. On one hand, using debt to finance properties can accelerate growth, but on the other, it feels like walking a tightrope especially with interest rates and market fluctuations.
For those who’ve used leverage in real estate, how do you balance risk versus reward? Do you have a set rule for how much debt you’re comfortable taking on, or does it depend on the deal? Also, with NFTs and other alternative investments gaining traction, do you ever diversify your leverage strategy beyond traditional real estate?
As a parent, I’m also thinking about long-term stability. Would love to hear how others manage risk while still aiming for growth. Any lessons learned the hard way?