By Janice S. Vanderbilt, Vanderbilt CPA Group

Leverage is doing more with less and it is one of the most important elements in a wealth strategy. Developing your leverage is something you can start doing right now.  Many people wait until they are ready to invest to develop their leverage when, in fact, they should start developing their leverage long before they start investing.

I’ve been able to take advantage of many great deals because I’ve been developing my leverage for years.  In fact, one of my best deals came up on a Friday and I closed on the property the following Monday.  Because I was able to act quickly, I ended up with instant equity. While the deal happened quickly – practically overnight, the preparation for it had been taking place for several years.

The preparation involved developing several types of leverage:

People – Developing Relationships
I had been developing relationships with people who I helped whenever I could to make their financial life better. This included my nephews who made money on every real estate deal they found for me, my business partners, who encouraged and helped me with all of the details of the deal, and friends, colleagues and others who provided all sorts of resources and information.

Developing relationships is something I continue to do on a regular basis.

Belief in Possibilities
I believed that the deal was possible even when I didn’t know how I would get it done. Belief in what’s possible is one of the greatest forms of leverage available to us.

Education
I had been developing my knowledge of real estate, of how loans work and how to close a deal.  I attended seminars, read books, and participated in many real estate groups.  I still continue to pursue education so my leverage will continue to increase.  Plus, when you increase your knowledge, your risk goes down.

Money
On the particular deal I’m referring to, I had $0 of my own money in the deal. I don’t like using my own money for deals.  The only way I have been able to make this happen is by developing the other types of leverage listed above.

Start Now and Don’t Stop
Developing your leverage is an ongoing process.  The more you develop it, the better you become at using and implementing it.

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