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10: The Great Deleveraging, a Fundrise market analysis

Onward, a Fundrise Production

CHAPTER

How Much Leverage Do I Need?

After the financial crisis, people started coming up with other ways to make bigger returns on their money. How much leverage do I need? How much do I need to borrow at 1 percent to turn 2 percent into 10 percent? That's one way that you would basically be happy if I said Cardiff, we're going to invest in really safe stuff. Here's the other circumstance where you'd probably be okay getting 2 percent. And that's if it was extremely liquid, right? Short term. So magically you can use the repo market to turn a 2% loan into a 10% return by taking liquidity risk.

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