That means you can control a large asset by making a relatively small investment upfront. One of the biggest advantages of real estate as an investment is that you can leverage it. It parallels real life in many ways, especially relating to real estate investment. Mortgages allow you to increase your rental income while keeping your competitors from buying up all the good stuff. And extorting huge sums from you when you land on their hotels.īut if you don’t have the cash to buy Boardwalk, you can still tie it up and keep your competitors from getting it - by mortgaging your other properties and using those funds to purchase Boardwalk. Likewise, snapping up one of a color group prevents your opponents from getting all the properties in that group. So if you already own Park Place and you land on Boardwalk, you don’t want to miss the chance to buy it. Some properties are more valuable and desirable than others, and owning a matching group allows you to build homes and hotels and charge much higher rents. When you roll the dice and land on a property, one of three things happens: you buy it, you ignore it, or you pay rent if someone else already owns it. The objective of this classic game is to control property and extract rents from your competitors until they run out of money. Check mortgage rates for rental property here Monopoly and mortgages The leverage you gain with smart mortgaging allows you to control more rentals and acquire wealth. Considerations for investors with multiple mortgaged properties.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |