How do you calculate "leverage"?

[Jason Eyerly]

Hello BP members!

One thing I use a lot in my field is leverage, and I've noticed that it's used a lot in REI as well. So how do you calculate your leverage and know when you are over leveraged? For example, how do you calculate whether or not you would survive if the market took a big hit and instead of paying cash for your properties, you used conventional mortgages, HELOC, etc. After a certain point I know it's common to use a portfolio lender, so is there less risk or greater leverage with a portfolio lender?

Thanks,

    Jason E.