Leverage

Today we have a special guest post from a good friend, Doug Marshall, CCIM of Marshall Commercial Funding. In his commentary on the current state of financing for commercial properties, he highlights the various challenges individuals face when navigating the process of securing a loan in the current market. As you will learn, having an […]

  A common strategy in commercial real estate investing is to multiply your spendable cash return by utilizing favorable debt.  It is referred to as “positive leverage.”

One of the biggest benefits of commercial real estate investments is that assets are generally secured by leases that provide a regular income stream. The revenue created by those leases may allow you to leverage your asset with favorable financing, thereby multiplying your equity over an extended period of time.