Some simple slides to illustrate the power of leverage in real estate investment. One of many small tools I'm developing for investors to use at www.chrisdavies.ca. Feel free to use this deck, but please credit me and link back where appropriate.

1. Leverage in Real Estate

2. Lev-er-age: The use of a small initial investment, credit, or borrowed funds to gain a very high return in relation to one's investment, to control a much larger investment, or to reduce one's own liability for any loss. Dictionary.com

3. Purchase Price $100,000

4. Purchase Price $100,000 Cash $100,000

5. Purchase Price $100,000 Cash $100,000 Hold for 5 Years at 5% growth

6. Purchase Price $100,000 Cash $100,000 Value $125,000

7. Purchase Price $100,000 Cash $100,000 Value $125,000 Profit $ 25,000

8. Purchase Price $100,000 Cash $100,000 Value $125,000 Profit $ 25,000 Return on Investment 25%

9. Purchase Price $100,000

10. Purchase Price $100,000 Cash $ 25,000

11. Purchase Price $100,000 Cash $ 25,000 Hold for 5 Years at 5% growth

12. Purchase Price $100,000 Cash $ 25,000 Value $125,000

13. Purchase Price $100,000 Cash $ 25,000 Value $125,000 Profit $ 25,000

14. Purchase Price $100,000 Cash $ 25,000 Value $125,000 Profit $ 25,000 Return on Investment 100%