First lets look at the definition for leverage as found at dictionary.com: The use of a small initial investment, credit, or borrowed funds to gain a very high return in relation to one's investment, to control a much larger investment, or to reduce one's own liability for any loss.
  
     How does leverage help you? Let's examine a hypothetical example that illustrates what can happen:

XYZ Retail Building
Valued at $1,000,000
Appreciates at 4% per year.
This property is also rented out and returns 5% of the value of the property to the owner after taxes and all expenses.

Example #1, the investor paid cash for this property and at the end of year 1 his property would be worth $1,040,000 because it appreciated 4% leaving him with an increase in equity of $40,000. the investor would have also received $50,000 cash flow generated from the rental income or 5%.

Example #2, instead of paying the full $1,000,000 in cash, the investor decided to only pay $500,000 cash and get a bank loan for $500,000. At the end of year 1 his property would be worth $1,040,000 because it appreciated 4% leaving him an increase in equity of $40,000. However, since he only put $500,000 down that $40,000 increase in equity is actually an increase of 8% on his $500,000 investment, not the 4% he would have received in example #1. He would have also  received the $50,000 cash flow from the rental income (less finance charges) so his return from this would be closer to 10% on his investment than the 5% he would have received in example #1.

     As you can see in this example, leveraging this property almost doubled the rate of return on the investment.
     REDEV Properties incorporates this advantage into every Real Estate Income Gain (REIG) project that we do. All of our REIG projects are leveraged with bank mortgages. Our current project, Ranchlands Village is a $31,500,000 project and it has a mortgage of just over 50% - $15,825,000. As in the illustration above, this maximized investors return on their investment.  

*Why We Want You To Be Rich - Donald Trump & Robert T. Kiyosaki
Copyright©2006 by Donald J. Trump and Robert T. Kiyosaki.
Published by Rich Publishing, LLC.

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• Strong demand for  commercial Real Estate in Calgary market
• Excellent location  in the dominant commercial area of NW Calgary
• Retail vacancy in NW Calgary only 0.4%
• Office vacancy rate in NW Calgary only 1.4%
• According to Conference Board of Canada, Calgary and Edmonton are "in a league of their own" as they lead growth in Canada for 2008 
• Minimum investment $25,000.
• Projected average annual return after tax 14.25%
• Receive a tax deduction for 8
• Receive capital appreciation on the sale of the property