Ep 22. Positive, Neutral and Negative Leverage | Financing in Commercial Real Estate

Welcome to Episode 22 of our insightful series on commercial and multifamily real estate investing! In this episode, we explore the concepts of positive, neutral, and negative leverage and their impact on financing commercial real estate. Understanding these types of leverage is crucial for optimizing your investment returns and making informed financing decisions.

Key Topics Covered:

Positive Leverage: Learn how positive leverage can enhance your returns and boost your investment performance.
Neutral Leverage: Discover the implications of neutral leverage, where financing does not significantly impact returns.
Negative Leverage: Understand why negative leverage decreases returns and the scenarios where it might still be strategically used.
Value Add Opportunities: Explore how value add opportunities can justify the use of negative leverage to improve property value and income potential.
By the end of this episode, you’ll have a comprehensive understanding of the different types of leverage, their effects on your investments, and the strategic considerations for using each type. Whether you're a seasoned investor or new to commercial real estate, mastering leverage is essential for achieving your financial goals.