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.
Popular Real Estate Terms
Measure of land representing one square mile. A section equals 640 acres. ...
Any person, company, or legal entity who signs a check or note to borrow money. By signing a payment instrument, the maker assumes full financial responsibility. For example, John is the ...
Trying to resolve a problem between two individuals up with some compromise or common ground. It occurs more often during times of poor economic conditions. An example is a creditor ...
Local regulation on how real property may be used in a particular locality. The county may establish different zoning classifications and restrictions. If the ordinance is violated, ...
Helps in supporting a building. ...
Purchase of part of property or property rights when condemnation takes place. The owner must be justly reimbursed. ...
Evaluation of the dimensions of a building to determine its ability to meet the needs of the occupants. ...
Modification made by a municipality to the zoning of a locality. A change in zoning typically has to be requested and approved by a zoning commission and then the legislative body. It can ...
Legal action of a landlord to remove a tenant.The tenant may have violated the lease agreement such as for the tenant's failure to pay the rent. ...
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