Keith discusses the inefficiency of compound interest in wealth building, advocating for compound leverage through real estate investments. He illustrates how a $100,000 investment in a $500,000 property at a 6% annual return can yield much higher returns due to leverage (see the math below).

He also explains how mortgage rates are influenced by long-term bond yields and discusses the benefits of real estate over stocks.

A coaching call with GRE Investment Coach Naresh highlights the process of investing in real estate, including financing considerations and the role of a coach in guiding investors. 

Here’s the math on a 5:1 leveraged RE return at a 6% appreciation rate: 

Year One: $500,000 x 1.06 = $530,000. Subtract $400K debt = $130,000 equity

Year Two: $530,000 x 1.06 = $561,800. Subtract $400K debt = $161,800 equity

Year Three: $561,800 x 1.06 = $595,508. Subtract $400K debt = $195,508 equity.