Apr 22 , 2016

Tampa School of Real Estate

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.

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