#188: Understanding The Most Foundational Concept in REI... Positive vs. Negative Leverage

Welcome to the Multifamily Wealth podcast, where we delve into the fundamental concepts of real estate investing. In this episode, we tackle a critical topic: positive leverage versus negative leverage. Join us as we define these concepts and dive into some essential math to illustrate their significance in today's rising interest rate environment.As interest rates continue to climb, understanding the nuances of positive and negative leverage becomes paramount for real estate investors. We break down the cost of capital, specifically the blended cost of capital, to help you grasp the intricacies of financing your real estate deals. By exploring scenarios where equity outperforms debt, we shed light on the importance of seeking deals that provide positive leverage.Are you a new multifamily investor looking to grow your portfolio but don't know where to start? Are you an existing multifamily investor looking to scale your business and master advanced topics such as capital structure, finding off-market deals, and establishing JV partnerships? Click here to learn more about 7-Day Multifamily, a program in which I teach investors the foundational skills they need to start and scale a multifamily portfolio rapidly.Are you looking to invest in real estate but don't want to deal with the hassle of finding great deals, signing on debt, and managing tenants? Aligned Real Estate Partners partners with passive investors looking for the returns, stability, and tax benefits investing in real estate offers, but not the work - join our investor club to be notified of future investment opportunities.Join here: https://alignedrep.com/investor-application/Connect with Axel:- Follow him on Instagram: https://www.instagram.com/multifamilywealth/- Connect with him on Linkedin: https://www.linkedin.com/in/axelragnarsson/- Learn more about Aligned Real Estate Partners: https://alignedrep.com/investor-application/