New Wave of Property Investors Prioritize Leverage Over Liquidity

Written by:

Rudi Davis

Date:

09 Oct 2025

Share

Share via Facebook

Share via Linkedin

Share via X

Copy to clipboard

The days of needing substantial cash reserves to enter real estate investing are over, according to Matthew Buckley, Founder of The Buckley Group at LPT Realty. He argues that modern financing options and investment strategies have dramatically lowered barriers to entry while potentially increasing returns.

The Evolution of Real Estate Investment

“The old school way of investing in real estate was you had a bunch of cash under a mattress, and you wanted to buy this ugly house, and you bought it with cash, and then you made it pretty, and then you sold it,” Buckley explains. But today’s market offers more sophisticated options: “Now you can flip a house with 10% down, they’ll give you the rehab loan.”

Leveraging Other People’s Money

Buckley strongly advocates for using leverage in today’s market: “If I was a first-time investor, I would use leverage to acquire assets, less liability for you, less risk for you, and you can borrow OPM (other people’s money).”

He points to several modern financing options that have changed how investors approach real estate acquisition and development. Hard money lending provides quick access to capital for time-sensitive deals, while DSCR (Debt Service Coverage Ratio) loans enable investors to qualify based on property income rather than personal earnings. Fix-and-flip loans support short-term renovation projects, allowing investors to improve and resell properties efficiently, and renovation financing offers flexible funding for value-add upgrades on longer-term holds. Together, these tools illustrate a shift toward creative, leverage-driven investment strategies that prioritize opportunity over liquidity.

The BRRRR Strategy Explained

Buckley details what he sees as an optimal modern investment approach: the BRRRR (Buy, Renovate, Rent, Refinance, Repeat) method. He provides a specific example:

“You buy a $200,000 property, you put $50,000 in it, that property is now worth, let’s say, $400,000. Well, the bank is going to give you 80% loan to value, that’s $320,000 the bank is going to give  you, yet I refinance the property, and I still own the property.”

Long-Term Wealth Building

This strategy, Buckley argues, offers advantages over traditional fix-and-flip approaches: “Don’t just sell it and get rid of the asset. You don’t know what it’s going to be in 10-20 years when that thing is paid off, that is called passive income.”

He emphasizes that this approach enables investors to maintain ownership of appreciating assets while generating consistent rental income that supports long-term wealth creation. By leveraging financing tools strategically, investors can scale their portfolios more efficiently, acquiring multiple properties rather than tying up all available capital in a single purchase. This shift toward leverage-based strategies, he explains, reflects a more sophisticated understanding of how to balance risk, liquidity, and growth potential in today’s real estate market.

Looking Forward

While Buckley acknowledges market challenges, including interest rates and economic uncertainty, he maintains that leverage-based strategies offer compelling opportunities: “The ultimate goal of real estate is to make money while you’re not working.”