Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 9 years ago,

User Stats

156
Posts
25
Votes
Daniel Sisto
  • Rental Property Investor
  • Liverpool, NY
25
Votes |
156
Posts

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

Daniel Sisto
  • Rental Property Investor
  • Liverpool, NY
Posted

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?

Loading replies...