LEVERAGE #shorts

11 Jan 2023

Watch on YouTube

Short YouTube clip ("LEVERAGE #shorts") in which Neel Dhingra explains how real estate allows individuals to use bank-provided leverage to control much larger assets. He contrasts buying stocks (where margin financing is typically unavailable at that scale) with real estate, using a $15,000 example that can secure $400k–$500k of property through mortgage lending, and emphasizes leverage as life-changing potential.

Like, I'm like, hey, bank, I'd like to buy $500,000 worth of B of A stock, right? I'm going to put up 15k and you give me the rest. They'll be like, get the out of here. Who are you? Right? Well, let's just say I come to you and I'm like, Look, I've got $15,000. It's a lot of money, but it's not life changing money. We have the ability in real estate to change lives with that $15,000 because of leverage. It is the one place because of government action and because of the way the markets are set up here in this country where you can get extreme leverage very cheap. And so that $15,000 can turn into 400, $500,000 worth of real estate. And the bank's going to give you all the rest of the money. What other investment can you make.