What Is Leveraging?
Leveraging is a financial strategy where the investor borrows capital from different financial sources in order to expand the investor's asset base and to generate higher returns by risking that capital. For example, a firm that engages in leveraging often will have more debt than equity in its balance sheet since the firm has utilized borrowed capital or other debt to undertake an investment or a project aimed at providing returns.
- What Are Some of the Benefits of Investing in Mortgages?
- Can I Make Money from Other People's Mortgages?
- What Is Fractional Ownership?
- What Is a Derivative?
- What Does It Mean to Bundle Mortgages?
- How Can I Leverage Other People's Money to Buy More Properties?
- What Are the Risks of Investing in Mortgages?
- What Are Tranches?