Question \#9 of 15 If Bob purchases investment property for \( \$ 1,000,000 \) with \( 10 \% \) down, by using the lender's money to purchase a property 10 times what he could afford to purchase by himself, he is using equity buildup. True False

Bob's strategy involves utilizing leverage by borrowing money, not just equity buildup. By putting down 10% on a $1,000,000 property, he invests $100,000 of his own money and finances the remaining $900,000. This method allows him to control a larger asset with a smaller amount of his own equity, which is a common practice in real estate to amplify returns. However, this does not directly refer to equity buildup, as that term typically pertains to the increase in ownership stake as property values rise or as the mortgage is paid down. In this scenario, the answer would be **False**. The statement mischaracterizes the concept of leverage versus equity buildup, leading to a misunderstanding of Bob's financial strategy.