Positive Leverage

Definition of "Positive leverage"

When the return on borrowed funds exceed the after-tax interest cost. It is profitably using other people's money.

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Related Real Estate Glossary terms

Cut-through Endorsement(assumption Of Risk)

Guarantee by a reinsurance company that payment for losses incurred by a third party will be made ev ...

Mutually Exclusive

Describing an instance where the occurrence of one event precludes the occurrence of a second event; ...

Straight Line Rule

Method of depreciating an asset in which its useful life is divided into an appropriate number of ye ...

Retirement Planning

Formal process of setting aside funds on a mathematical basis to provide deferred income benefits. ...

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Addition to the pure cost of insurance that reflects agent commissions, premium taxes, administrativ ...

Sistership Exclusion

Part of the business risk exclusion in general liability insurance that denies coverage for subseque ...

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