Positive Leverage: Why Los Angeles is Becoming an Investor’s Market

Positive Leverage: Why Los Angeles is Becoming an Investor’s Market

Los Angeles is turning into a buyer’s market. And, if you know how to use positive leverage, you’re positioned to make big gains. Here's what you need to know to get ahead of the curve and why now might be the perfect time to invest. Let’s start by defining what we mean by positive leverage. At its core, positive leverage happens when the return from your investment property—measured by its capitalization rate (cap rate)—is higher than the interest rate you pay to finance it. When this happens, every dollar you borrow earns more...

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