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.


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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