I would like to explain how leverage can be the essential ingredient to creating wealth by investing in real estate. We all understand there are many types of property to consider when buying real estate as an investment. Each property is unique and can be bought with various goals in mind for ROI (return on investment) . Income producing real estate is bought with the emphasis on the cash flow it produces while land might be purchased with hopes of appreciation over time. The average person with $100,000 who buys a $100,000 property. Who pays cash and then sells it for $125,000... From: How Real Estate and Leverage Can Create Wealth