Sentences with phrase «positive leverage»

When borrowing has a positive effect on the return on investor equity it is referred to as positive leverage, while when it has a negative effect it is referred to as negative leverage.

An increase in package volume produced revenue growth across all segments while positive leverage allowed operating margins to improve to 10 %.

First consider the power of positive leverage — the spread between the mortgage rate and the cap rate.

Now sure you will still have positive leverage if your cap rate is at 8 % but boy you ain't making much of a return on that.

Positive leverage in the world of property investing describes the situation in which borrowing helps increase the return of a property investment compared to the return that would be achieved if the investor did not use any borrowed funds for acquiring or developing a property.

It is said that borrowing will result in positive leverage when the return of the investment without using borrowing (unleveraged return) is higher than the cost of borrowing or the effective interest rate.

To me, it gets real messy just looking at cash flow or cash - on cash return and being OK with just saying «yep I got positive leverage!».

With positive leverage, an investor can actually supercharge his or her return because the entire property appreciates in value not just the cash invested.

The price it paid reflects a 5.78 percent capitalization rate, so it was able to generate positive leverage, bolstering its potential yield, with its bond issue.

Positive leverage in the world of real estate investing describes the situation in which borrowing helps increase the...

Because while the company lists the liability on its balance sheet — and still owns the liability — it can use the float as positive leverage to grow the company or invest in other businesses.

So it has a lot of things that are a positive leverage to its clear overspending.

This would increase your positive leverage, (i.e. more money would earn returns at your usual rate,) hence the amount of money to reduce and convert your mortgage would be substantially more.

Everyone has different ways of explaining it, but the important thing is that you KNOW if you have positive leverage and what the spread is.

If the CCR is higher than the Cap Rate you have positive leverage, i.e. you can expect a better return using the financing you have in mind.

Positive leverage or gearing refer to the use of borrowed money to increase investment returns.

Positive leverage is an important means for enhancing property investment returns, especially for property investors shooting for double digit - returns.

Within this context, when positive leverage can be achieved, borrowing at high LTV ratios is one of the key strategies investors can use to achieve double - digit returns on their equity investments

When the interest rates are low enough to allow for positive leverage, investors can boost significantly their return on equity by borrowing a high percentage of the acquisition price (which implies high LTV ratios).

Wurtzebach and Miles (1994) suggest the use of the mortgage constant as opposed to the interest rate in assessing whether borrowing will result in positive leverage.

Positive leverage in the world of property investing describes the situation in which borrowing helps increase the...

Positive leverage is an important means for enhancing real estate investment returns, especially for property investors shooting for double digit - returns.

Positive leverage in the world of property investing describes the situation in which borrowing helps increase the return of a property investment...

Positive leverage in the world of real estate investing describes the situation in which borrowing helps increase the return of a property investment compared to the return that would be achieved if the investor did not use any borrowed funds for acquiring or developing a property.

Placing «positive leverage» on an asset allows for investors to effectively increase positive cash flow from operations by borrowing money at a lower cost than the property pays out.