Negative Leverage

Definition:   borrowed funds cost more than the income the funds generate

Pronunciation:   \ˈne-gə-tiv\ \ˈle-və-rij, ˈlē-; ˈlev-rij, ˈlēv-\

Used in a Sentence:   When the property didn’t generate as much income as anticipated the investor was faced with a negative leverage situation.

Back to blog

Most Popular Courses