Q. Explain the concept of leveraging in real estate investments.

A. Leveraging means being able to make a relatively small investment to purchase a more valuable asset that can appreciate at a higher multiple than the invested cash. For example, say you make a $10,000 cash investment to purchase a $250,000 home and the house appreciates 5% during the first year….that means after one year the home would be worth $262,500 – a gain on the asset of $12,500. Your annual return on your $10,000 investment would be a whopping 125% for one year. By contrast putting the same amount of $10,000 cash in the stock market and posting a similar 5% gain would only net a $500 return on the same investment.

Q. How much money is required for a down payment on a new home today?

A. Believe it or not, Franciscus Homes is currently working with HUD approved non-profit organizations who will actually make your down payment for you in the form of a gift that does not have to be repaid. Down payment and closing cost assistance can open the door towards home ownership for hard working families who are unable to save the cash investment that ‘s normally required. You’ll gain instant equity on the day you move in! Visit www.franciscushomes.com and click on the Instant Equity link to find out more.