Wisdom outweighs any wealth.
Sophocles

Does the idea of using someone else's money to buy something for yourself seem impractical? It shouldn't; it happens all the time. You've probably even done it before. Have you ever taken out a loan to buy a car? By doing this, you tapped into other people's money (the bank's) to buy the car. How much better would it be if you also had someone else making the payments for you? By investing in real estate, you do just that. Instead of using other people's money to accrue additional expenses, you use other people's money (the bank's) to buy the property, and you use other people's money (your tenants) to make the payment by renting the property out for more than it costs you to own it. The income produced by the property that is left over after all expenses are paid for is the property's cash flow. And simply put, that is the power of leverage.

Too many people are under the impression that they need to save up a large down payment before the bank will lend them the money to buy a property. This is not true. There are a number of ways that you can obtain financing without bringing in a down payment. The easiest way to start acquiring real estate is to buy your first property and then use its equity to buy more properties. Equity is the difference between what an asset is worth and what you owe on it. If you own a property that is worth $100,000 and you have a mortgage on the property for $80,000, your equity is $20,000. Using the equity in one property to buy another is exercising the power of leverage. Leverage helps expedite the wealth process. Using leverage maximizes your purchase ability. It is the most efficient way to acquire properties, build positive cash flow, and take advantage of appreciation.

Appreciation is the amount that an asset goes up in value over a period of time. If you took your $20,000 equity and used it as a down payment to buy one more property, you would benefit from the cash flow of two properties instead of one. You would also earn the appreciation of two properties instead of one. Real estate on average has realized between 3 and 8 percent appreciation per year. By using one property to buy another, you are using leverage, but not to its fullest. How much faster could your wealth grow if instead of using your $20,000 to purchase one more property, you use it to purchase four properties by putting only $5,000 down on each? Your wealth would increase by the appreciation and cash flow of four more properties instead of only one.

A recent Forbes Magazine article stated that 97 out of every 100 self-made millionaires made their fortunes through real estate investing. Believe it or not, you, too, can take control of your financial life by creating wealth through the acquisition of real estate assets. You may be thinking that all of this sounds too good to be true; well, wait it gets even better! Not only is real estate one of the only investments in the world that you can acquire using the power of leverage, but the income and gains produced by real estate receive some of the greatest tax breaks available. Unlike stocks and other investments, real estate profits can be tax deferred or better yet, even tax free! The government allows you to roll-over each windfall into your next real estate investment through a process called a 1031 exchange. It feels good to make money and not pay the lion's share in taxes.

Real estate can also build wealth in any economic climate. If the real estate market is up, quick turnaround investments (flips) can produce large, immediate gains. If the market is down, there are more opportunities to acquire assets at a lower cost due to foreclosures, motivated sellers and seller financing. When interest rates are low you can buy more assets for your buck. When interest rates are higher, more people are prompted to rent apartments-- which translates into higher rental prices. The increased demand turns your real estate asset into a cash flow cow.

The power of leverage is truly a remarkable thing, and you can start taking advantage of it today. Whether you own a home with equity already, or you are ready to go purchase your first deal, let the power of leverage help jump start you on your path to success in real estate investing.

Michael Pratt

Our team's diverse backgrounds and investing experiences include a high school teacher, a college drop-out, an MBA graduate, a waiter, a secretary, a real estate agent, a banker and a stay-at-home mom. Despite our diverse backgrounds, we shared a common, life-changing event; we all made the decision to truly change our lives. Although our starting points couldn't have been any more different, we each discovered that our journey toward financial freedom began with real estate.

Most real estate investing "gurus" offer a "one-size-fits-all" approach, providing generic ideas and uncertain results because their philosophies fail to consider individual experience and circumstances. Our personalized approach, the understanding that each of us has a very unique background and set of circumstances, is what has made MyreiTeam?s system so effective.

After years of learning "the hard way", we are now living our dreams. The high school teacher now has the ability to spend more time with his most important students, his own kids. The college drop-out is retired and enjoying exotic fishing and hunting trips. The waiter is now waited upon, vacationing and skiing in the world's greatest resort towns. The MBA grad and banker own their own real estate investing firm and the secretary now manages her own employees who are devoted to her real estate empire. The stay-at-home mom has moved her family into a luxurious 8,000-square-foot scenic mansion.

All of the wealth and success we have been enjoying has been better than we could have dreamed. But even more satisfying and phenomenal was the rate at which the Personalized Investor Matrix? was creating wealth for our friends and family who were using it to get started in real estate. Now we want to share this revolutionary approach with you. Our powerful, personalized investing system is now at your fingertips.

MYreiTEAM is exactly what it says, your team! We are here to provide you with all the help and support you need to succeed. If you have investment questions, need some support or motivation, or if you just made an exciting deal and just want to share your experience with somebody, post your question or experience on the My REI Community board. One of our team members will quickly respond to your question with expert advice. The point is we are committed to your investment success and are excited for the opportunities that lie before you. Welcome to MYreiTEAM!