How to Defray Leverage Risk in Real Estate Investments

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Most people don't borrow money to invest in stocks. Most average individual mom and pop investors are not making margin calls. That's another way of defraying risk. In real estate you carry a significant amount of leverage risk, assuming you're not buying this property free and clear. If the only way to justify that leverage risk is by hoping, hoping that the property will rise in value, that doesn't seem to be a sound method for approaching an investment.

#419: Casey isn’t happy at her job. If she leaves before her one-year mark, she’ll lose her 401k contributions. Should she stay or find a new job?

Daan resides in a high-cost-of-living area where real estate appreciates rapidly. But there’s no cash flow. How should he evaluate real estate as an investment?

Emily already maximizes her 401k contributions. Should she contribute to an after-tax 401k next?

Ryan’s investing for his son. If the yield is the same between two mutual funds, can he leave his son with more money if one mutual fund pays dividends more frequently?

Former financial planner Joe Saul-Sehy and I tackle these four questions in today’s episode.

Enjoy!

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