google bot detected Financial Leverage | Real Estate Glossary | Realestateagent.com

Financial Leverage


Definition of "Financial leverage"

A portion of a real estate company's assets financed with debt instead of equity. It involves interest an principal obligations. Financial leverage is beneficial to real estate investors as long as the borrowed funds generate a return above the cost of borrowing. the increased risk can offset the general cost of capital.



Related Real Estate Glossary terms

Related Real Estate FAQ