Positive and Negative Leverage

What is positive leverage, and how does it affect investments? Positive Leverage is where an investor receives a higher rate of return on their investment than the rate they are paying to borrow funds for that investment. An example of positive leverage is in a real estate transaction where the return on investment without leverage … Read more

Is Roofstock Legitimate?

Turnkey rental property investing has appeal. The promise of good property to go and produce an income from day 1 of purchase. Is it too good to be true? Roofstock even takes it one step further by vetting the properties and property management companies it works with. But is it too good to be true? … Read more

Build to Rent Business Model

Build to rent has been receiving a lot of press lately, but what is the build-to-rent business model? Build to Rent is a real estate investing strategy where developers build single-family houses with the intention of renting them out rather than selling them. Large Scale vs. Small Scale There are opportunities for investors to buy … Read more

Calculating the IRR of the BRRRR Method with Examples

One of my favorite aspects of the BRRRR strategy is that it does not leave capital to languish. Employing the strategy means constantly recycling your initial capital. Using leverage and sweat equity gained through forced appreciation, not necessarily swinging a hammer, you are able to continually grow your portfolio from the same initial capital. It … Read more