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Updated almost 10 years ago, 02/20/2015

User Stats

86
Posts
7
Votes
Mason V.
  • Investor
7
Votes |
86
Posts

What exactly does it mean to be over leveraged and how should you deal with it?

Mason V.
  • Investor
Posted

To my understanding being overleveraged is having more debt than you can payoff. This, however, cannot be right sense simply getting one mortgage would make the vast majority of people overleveraged. Therefore it must be that being over leveraged involves more than just debt. I just don’t know what it is.Would buying a new rental/starting a new rehab positively or negatively affect your leverage?

I have no problem with taking risks, but i like to do what i can to minimize the damage from my eventual screw ups.

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