I was not previously familiar with the term cash-on-cash but it looks like you’re saying you can earn a 20% return if you use ~5:1 leverage. In that case, sure, but that’s a lot of leverage, and 20% is actually a pretty bad return at that much leverage. Historically, stocks would have returned about 40%.
I disagree, 20% is a damn fine return. Yes, the key is using leverage. (I doubt you assumed I was talking about buying properties with cash before.)
Do you do leverage trading? On first thought, it scares me not having any equity. If leverage trading gets nearly quadruple decent regular returns, why isn’t there EA discussion groups and such around that then? It seems significantly more risky.
I was not previously familiar with the term cash-on-cash but it looks like you’re saying you can earn a 20% return if you use ~5:1 leverage. In that case, sure, but that’s a lot of leverage, and 20% is actually a pretty bad return at that much leverage. Historically, stocks would have returned about 40%.
I disagree, 20% is a damn fine return. Yes, the key is using leverage. (I doubt you assumed I was talking about buying properties with cash before.)
Do you do leverage trading? On first thought, it scares me not having any equity. If leverage trading gets nearly quadruple decent regular returns, why isn’t there EA discussion groups and such around that then? It seems significantly more risky.