Personal Finance
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by
1031 Exchanges
presented by
Real Estate Classifieds
Reviews & Feedback
Updated almost 5 years ago on . Most recent reply
Being Over-Leveraged in a Recession
Hey Guys,
I've been hearing the term "over-leveraged" thrown around a lot in the forums. What is a healthy balance of leverage to have? At what point do you consider some one to be over leveraged? Can anyone provide an example of an overleveraged portfolio with some basic numbers?
Thanks in advance!
Most Popular Reply
Bjorn Ahlblad
#5 Multi-Family and Apartment Investing Contributor
Pro Member
#5 Multi-Family and Apartment Investing Contributor
- Investor
- Shelton, WA
- 6,948
- Votes |
- 6,603
- Posts
Bjorn Ahlblad
#5 Multi-Family and Apartment Investing Contributor
Pro Member
#5 Multi-Family and Apartment Investing Contributor
- Investor
- Shelton, WA
@Brian Balthasar generally if you can't go for 6 months without income you are said to be over leveraged. Frankly, I'd make it more like 12 months without income, and always keep credit lines open. We are about to see big time examples of it unfortunately.