Title - Leverage tags - jointventures leverage
Like Cholesterol, there’s good leverage and bad leverage.
Examples of bad leverage are when someone gets a mortgage for a house, lends money to buy a business or equipment, or hires employees on a salary.
In each case, they hope that the asset makes them a lot more money every month than the cost of the debt service - and it appreciates fast enough to sell for a lot more than they’ve underwritten.
If all works out well, bad leverage can be profitable - but if anything goes wrong, it can bring you down.
Good leverage, on the other hand, gives you infinite upside.
There’s still investment in capital, time, energy, effort… but it’s not your investment.
Instead, you capitalise on other people’s underutilised, overlook, undervalued, underperforming assets and opportunities.
You leverage the millions that other people have invested in products, services, facilities, customers, marketing, and more - without the risk of bad leverage.
[#abraham2005jvs]: Jay Abraham: Joint Ventures: From Mediocrity to Millions.