Is Leverage Still a Smart Move in High-Interest Environments?

In the investors’ world, “Cash is the King” is not only a slogan. It is a revered universal rule. Warrant Buffet, the ultimate investment guru and unarguably the most successful investor of the last century, is known to keep cash positions when he does not see a good buy. In the real estate investment world, the rule of the game is the same.

People always think it is not a smart move to leverage in times of high interest rate. As a seasoned Tax Accountant, I will not agree with that strategy. I believe Leverage is a MUST in Real Estate Investment for tax efficiency. The crucial consideration isn't whether to leverage, but rather how much to leverage.

Below is the playback time corresponding to the recorded video of this webinar, feel free to jump directly to the part you are interested in:

1. Background Introduction & Why leverage in RE investment? (00:00:00-00:08:19)
2. Real Case Analysis (00:08:19-00:20:33)
3. What is the underwriting criteria? (00:20:33-00:30:38)
4. Is leverage still a smart move in high-interest environments? (00:30:38-00:37:40)
5. How much should you leverage? Any creative financing tool? (00:37:40-00:48:50)
6. Q&A (00:48:50-00:55:41)

Presenters Information

Justine Zhou | CEO of Zhou Agency
As a one-of-a-kind CPA who also excels in real estate investment, retirement planning and insurance, Justine was once given the nickname of "The Renaissance Woman", meaning " a woman who can do all things if she will." In spite of her seniority, Justine is a very approachable professional who genuinely cares about each individual and business' needs and finding them solutions that best fit their unique situation.

Cathy Tang | Senior Vice President of Loans at American Metro Bank
Cathy has been a commercial lender and a loan portfolio manager for 10+ years. Working at a boutique bank, Cathy is able to approach each loan with personalized attention, common sense, and disciplined creativity. Cathy oversees the entirety of the bank's loan portfolio, with a large concentration of multi-family property and construction/rehab loans. Known throughout the industry for their reliability and expertise, Cathy and her team serve as trusted lending advisors, guiding clients throughout every stage of the lending process, from initial inquiry to closing.

Sushil Hani | Real Estate Investment Advisor at Zhou Agency

Zhou Realty
Website: www.zhouagency.com