Definition from Nolo’s Plain-English Law Dictionary
1) The use of borrowed money to purchase real estate or business assets, usually involving borrowed money that equals a high percentage of the value of the purchased property. The dangers of high leverage are overappraisal of the property, a decline in the value of the property, and high carrying costs (interest, insurance, taxes, maintenance). 2) To borrow most of the funds necessary as a loan against real estate to buy other real estate or business assets.
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:19 pm