Over-leveraging can send money down the drain. The more leverage is used, the more risk is involved. Always. That doesn’t mean you shouldn’t use a good deal of leverage. It can be an amazing tool for maximizing growth.

However, using other people’s money costs money. That means if you don’t have the reserves to see the project through to an exit strategy of some sort, then you can and will lose money in real estate.

Remarks: Leveraging meaning that investing with borrowed money as a way to amplify potential gains (at the risk of greater losses). The borrowing of capital to purchase, start up, or expand an enterprise or business operation while relying on its activity to generate enough gross profits to cover costs, including meeting the terms of agreements with lenders, the ratio of a company's debt capital to the value of its ordinary shares.