Positive Leverage

Policy Manual Reading Positive Leverage 1 minute Next Potential Gross Income (pgi)

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.

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