Passive Real Estate Investing How Lenders Get the Short End of the Stick
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Sep 23, 2025 In this enlightening discussion, Aaron Chapman, an experienced real estate lender and investor, dives into the strategic use of leverage in property investing. He explains how properly structured debt can enhance returns and accelerate portfolio growth. Surprisingly, he reveals why lenders often find themselves at a disadvantage in the long term. Aaron emphasizes treating lenders as strategic consultants to maximize opportunities and navigate financing effectively. Tune in to discover how leveraging properties can be a game-changer for your investment strategy!
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Leverage Is A Wealth Builder
- Many people are taught to fear debt but wealthy investors use leverage to expand wealth.
- Properly structured leverage multiplies returns and accelerates portfolio growth.
Plan Leverage During 1031 Exchanges
- When doing a 1031 exchange, work with a lender and exchange company to structure leverage strategically.
- Tweak down payments across replacement properties to maximize use of exchange funds and portfolio diversification.
Cash Versus Leveraged Portfolio Example
- Aaron contrasts buying one property cash versus multiple leveraged properties using the same capital to illustrate leverage.
- He shows cash purchase yields ~10.3% while splitting funds across leveraged homes raises effective returns.