Un leveraged vs Leveraged returns

Some of the benefits of taking on leverage.

one is it helps you deploy your capital efficiently. That means you don’t have to tie all of your dollars into one or a few investments, you can spread your investment dollars across more investments because you get to borrow against that.

Two is to give you some liquidity, taking on debt for a project that you had previously purchased, all cash allows you to take some of that money back out and reinvest it so that you have more liquidity there. So debt allows you to get some liquidity.

Lastly, as we’ve seen, if it is done correctly, if you take on debt where it helps, it can significantly improve your investment returns.

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