From the course: Real Estate Analysis Foundations

What is debt leverage?

- Hey, welcome back, in this section we're going to explore the concept of debt financing, or also known as leverage in investing. Now there are two main types of debt financing for investments, an interest only and the fully amortized. We're going to look at both, we're going to see what is different between them and ultimately why you should care about debt financing as an investor. First, we're goin'a look at what makes them different conceptually. And then we're going to look at what the numbers look like when we factor it in into an actual investment analysis. Finally, we're going to discuss some important implications of leverage on investment returns and how it may affect your investment returns as an investor. Alright, let's dive in.

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