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Updated almost 14 years ago on . Most recent reply

Jim Stardust's profile image
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Jim Stardust
  • Real Estate Investor
  • from Cincinnati, Ohio
  • Member since May 6, 2011
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Jim Stardust's profile image
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Jim Stardust
  • Real Estate Investor
  • from Cincinnati, Ohio
  • Member since May 6, 2011
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Jim Stardust
  • Real Estate Investor
  • Cincinnati, OH
59
Votes |
119
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General Real Estate Investing

Leverage, debt, and knowing when to stop?

Jim Stardust
  • Real Estate Investor
  • Cincinnati, OH
Posted

Is there a formula for real estate investors to know how much leverage or debt they can take? I recall there's a commercial debt coverage ratio but does it apply to real estate investing? When would a person know they've had enough leverage or debt or they risk default if they take any additional risk?

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Jon Klaus
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  • from Garland, TX
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Jon Klaus
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  • from Garland, TX
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Jon Klaus
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  • Garland, TX
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Jon Klaus
  • Developer
  • Garland, TX
Replied
Originally posted by Financexaminer:
Originally posted by Jon Klaus:
Bryan, how do you calculate value for the properties you've owned for a good while?

By Aguestppraisals Jon, that way your always in the black.

HeHe, a method popular even with some bankers 6-10 years ago.

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