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.

Search Real Estate Glossary

Related Real Estate Glossary terms

Superseded Suretyship Rider

Endorsement to a fidelity bond or surety bond to cover losses that occurred after lapse of the disco ...

Security Agreement

Legal contract in which the lender controls the pledged property being financed. The agreement descr ...

Risk Identification In Liability Exposures

process of discovering sources of loss concerning the liability risk faced by individuals and busin ...

Equity Kicker

Privilege of a real estate investor or lender to participate in the profitability generated from pro ...

Charitable Reverse Split Dollar (crsd)

Financial technique for providing term death coverage for an entity. With this procedure: (1) an ind ...

Advanced Funded Pension Plan

Retirement plan in which money is currently allocated to fund an employees' pension. ...

Related Real Estate FAQ

What Is Depreciation?

Depreciation is a decline in the value of property due to general wear and tear, or is also known as ...

What Do I Need To Know About Indemnity Insurance?

A principle of insurance which provides that when a loss occurs, the insured should be restored to t ...

What Does Fannie Mae Mean?

Fannie Mae is a name used by the Federal National Mortgage Association, which is a government-charte ...

What Is A Multiple Listing Service (MLS)?

A multiple listing service is a computerized listing of the homes for sale in an area listed with a ...

How Can I Protect My Home Office?

Commercial insurance is designed to help protect many of the risks your business can face, includin ...

What Is An Amortization?

The process of paying off a loan balance. As you make payments, a certain amount is applied to the p ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews

Agents join here

Add our widget on your Website

Real Estate Advice

How is Square Footage Determined? 5 U.S. Cities with the Best Public Transportation 10 Tips for Homebuyers Top Five Reasons Your Home Offer was Rejected Getting Ready to Sell? Don't make these DIY Mistakes!

FAQ

What are prepayment penalties? What is a lease purchase mortgage? What is an appraised value? I need Hospital Insurance in addition to my current health insurance policy? What is homeowners association (HOA)?