How to Money · Friday, July 3, 2026
The hosts discuss the critical role of leverage in real estate investing, acknowledging it can enhance returns but also warning of its significant risks. They use the example of the 2007 market downturn to illustrate how leverage can lead to financial ruin if not managed carefully, especially without sufficient cash flow.
“So, like, sorry, move on, go do another investment because you don't have the skin to be able to get into this game.”
“But an intelligent use of debt it can help make returns look better than they otherwise would, especially in a booming market.”
“But the truth is leverage can also bite you in the button. I mean, talk to anybody who about real estate back in two thousand and seven. They'll tell you. They'll sing the tune of how leverage can work the other way too.”