Used properly, leverage is one of the best ways to increase your real estate net worth. : A pioneer in the Single Family Rental space, creating opportunities while preserving neighborhood affordable housing. AlexHemani.com One of the most powerful advantages in real estate investing is financial leverage. Leverage is generated by using borrowed capital as your funding source when you invest. This allows you to buy a much larger asset and increase the potential return on your investment than you could if you had to pay 100% of the purchase price upfront.