Real Estate Financing

Leverage

Definition

The investment strategy of using borrowed money to increase the potential return of an investment.

Use Case

An investor uses leverage to purchase a rental property by taking out a mortgage and using only a percentage of their own money as a down payment.

Related Terms

Glossary Categories

Explore more commercial real estate definitions, use cases and terms.

Documentation Glossary Image

Due Diligence Glossary Image

Financials Glossary Image

Investing Basics Glossary Image

Real Estate Financing Glossary Image

Real Estate Strategies Glossary Image

Regulation Glossary Image

Taxes Glossary Image

Ready to see how it works?

Join the GPs getting ahead of the curve