Leverage

Leverage is a business term that refers to how a business acquires new assets for startup or expansion. … When a business is “leveraged,” it means that the business has borrowed money to finance the purchase of assets. Businesses can also use leverage through equity, by raising money from investors.

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In real estate were simply talking about the debt used to acquire properties. The term “highly leveraged” refers to borrowing a lot.

Specifically, the term leverage points toward using what you have available plus borrowing more to enable you to acquire more than what you would other wise be able to.



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