However, you can increase your return on investment on a property in several ways. If someone is trying to sell you on a new way to make money in real estate other than buying low/selling high or.

One of the most unique things about investing in real estate is that you can buy it using a small amount of your own money, while borrowing the rest, often four to twenty times more, from a lender. This is called leverage. If you purchase a property using significantly more debt than equity, the investment is said to be "highly leveraged."

Suppose you’ve found a great deal on the perfect vacation home or rental property (check out my rental property investment program). You’ve got some equity built up in your current house, you have a decent amount of money set aside in an emergency fund and your retirement accounts are well funded considering your age.