How Leverage Looping Works
Amplify your real estate exposure through strategic leverage multiplication
The 5-Step Process
Understanding how leverage amplifies your position
Initial Token Purchase
You purchase 10X RE Leverage tokens with your capital (SOL, USDC, etc.). These tokens represent fractional ownership in a portfolio of Grant Cardone's income-producing commercial real estate properties.
Example: You invest $10,000 and receive tokens worth $10,000
Borrow Against Your Holdings
Use your tokens as collateral to borrow additional capital. The protocol allows you to borrow up to a certain loan-to-value (LTV) ratio against your token holdings.
Example: Borrow $8,000 against your $10,000 in tokens (80% LTV)
Buy More Tokens (The Loop)
Take the borrowed capital and purchase more 10X RE Leverage tokens. Now you own MORE tokens than your initial investment could buy.
Example: Buy $8,000 more tokens. Total holdings now: $18,000
Repeat to Amplify (Up to 10X)
Repeat the process: borrow against your new larger position, buy more tokens, and loop again. Each cycle amplifies your exposure to the underlying real estate.
Example: After multiple loops, your $10,000 could control up to $100,000 in real estate exposure
Monitor Liquidation Risk
If the value of the underlying real estate drops, your collateral ratio decreases. When it falls below the minimum threshold, your position gets automatically liquidated to repay the loan. This can happen FAST.
Critical: A 10% drop in property values could wipe out a 10X leveraged position entirely.
The Math: Understanding 10X Leverage
When Values Go Up 10%
• Your $10,000 investment
• Controls $100,000 in real estate (10X)
• Property values increase 10% = +$10,000
YOUR GAIN: 100% return ($10,000 profit)
When Values Drop 10%
• Your $10,000 investment
• Controls $100,000 in real estate (10X)
• Property values decrease 10% = -$10,000
YOUR LOSS: 100% (complete liquidation)
Rental Income & Carry Economics
The leverage looping strategy benefits from positive carry: rental income exceeds borrowing costs, generating cash flow even with maximum leverage.
Annual yield from property rental income
Annual interest rate on borrowed capital
You earn 7.75% from rent and pay 4.5% in interest = 3.25% positive cash flow