May 10 , 2016

Tampa School of Real Estate

Positive Leverage

Definition:   when the benefits from borrowing funds exceed the costs of borrowing them

Pronunciation:   \ˈpä-zə-tiv, ˈpäz-tiv\ \ˈle-və-rij\

Used in a Sentence:    An investor wants an investment property that will produce a cash flow in excess of the cost of borrowing the funds, or a positive leverage.

P