can someone explain leverage to me as practised by those RE bullshitters finfluencers. I feel their whole spiel is just bullshit but I don’t know enough to be sure about it.
according to them, you “buy” a home - you put X% down and pay your first monthly (and then post on r/firsttimehomebuyer). then you go to (another?) bank and say “look I got this house I wanna use as collateral” and they go “wow you own a house! sure, have this bag of money”… repeat until you “own” like a city block.
like, how does that not crash and burn at the first step, just a cursory glance at the asset’s status? how are they not “lol you ain’t got no house dumbass come back in 20 years when you actually own it”?
It basically means using existing assets as collateral for a loan.