Debt to Worth (equity)- What is a safe ratio for me & my business

[Daniel Sisto]

With interest rates low and banks a little more lenient once again with some of their lending. People seem to be leaning towards using leverage as the way to gain the most wealth in this industry. With Cash purchases at their lowest in several years (due to a # of factors), the trend of leveraging seems to be increasing. But how much is to much when it comes to leverage? 

Obviously the lower the debt to equity ratio the more creditworthy you are considered because you have collateral to cover both your current and future loans. 

-So is there a specific % BP members use to calculate the maximum amount of leverage they are willing to use/ or risk they are willing to take on?

[Jay J.]

No lie, I'm big on formulas and mathematic equations to calculate risk/ reward/ etc..  but as you sort of sugested, I think this is more of a personal tolerance question....that said, I'd love to see a 'BP approved' method.