Financial Leverage 2019-06-03 08:00:00

Financial Leverage

Financial leverage is the use of borrowed funds to acquire an investment. In the context of commercial real estate, this typically involves the use of a mortgage to acquire a property.  

For instance, an investor may purchase an investment property at a cost of $500,000 by using $150,000 of personal equity and borrowing the difference of $350,000.


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