HOW TO MAKE $20.00 FOR EVERY $1.00 INVESTED

It has been said you can lift the Rock of Gibraltar if you have a fulcrum point and long enough lever. When we refer to "financial leverage" we are talking about the same principle. If you buy a business building for $100,000 with $5,000 down, this is using the leverage of 20 to 1. For a mere 1/20th of the purchase price, you own and control property that is 20 times more valuable than your cash investment. If the income of the building is only sufficient to make the payments and expenses and you don't gain any cash flow, you are still getting the building paid for and perhaps in 5 years or so, with continuing inflation, you can sell the building for $200,000... a gain of $95,000 on a $5,000 investment. This is the potential result of proper use of leverage. A good rule to follow in applying leverage, relevant to any business venture for that matter always provides a reserve. Hold back some cash for emergencies. Hold back additional capital so if you go under you will hav...