Well, leverage is both a blessing and a curse. But, if the investor knows how to manage his financials, leverage can never be an issue. Although there are some inherent (yet avoidable, if acted upon wisely) risks of leverage, there are many great returns for an investor. If an investor has $100,000 with him, he can either invest them on leveraged assets by purchasing 4 properties with down payments or else, use that entire amount on one property by settling it fully.