Welcome to passive real estate investing the show where busy people like you learn how to build substantial passive income while creating wealth for the long term.

And now here's your host, Marco Santorelli.

Hello, my friends and welcome to passive real estate investing

and another episode of Ask Marco,

where I answer your investing related questions.

I'm your host, Marco Santorelli. Today's question comes from John and he says

Marco I just discovered your podcast in the last couple of weeks and I'm

considering working with your firm. Thank you. I have my first meeting with your firm. Thank you. I have my first meeting with your team this week. My question has to do with how much leverage is too much. I know leverage is largely a good thing in terms of amplifying capital to work harder for me,

but I assume there is a point where an investor can be over-leveraged.

How do you look at leverage in terms of how much is just enough and how much is too much?

Well, this is a great question.

Now, John goes on to ask another question here,

which is not exactly related, but I'm going to read it out.

He says I've been listening to bigger pockets for several months and they tend to favor

the BRR.R.R. strategy which really minimizes the capital left in the average property, thus theoretically

accelerating the velocity, but this strategy is high leverage. Now that was a mouthful and for

those that don't understand it

don't worry I'll try to explain it I'm not sure I fully understand that question

but he goes on to say this is something I'm trying to get clarity on how much leverage is too much.

So that's the underlying question here is how much leverage is too much.

So he says thanks for the podcast.

I've learned a lot already, John. John you're welcome.

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