Background Note | HBS Case Collection | 2012 (Revised from original 2007 version)

Technical Note on Financial Leverage in Real Estate

by Charles F. Wu and Arthur I Segel

Abstract

Demonstrates the accelerating impact of leverage on returns under differing scenarios of property performance. The performance scenarios represent two points in time: the inception of the investment and the liquidation.

Keywords: Property; Investment; Real Estate Industry;

Citation:

Wu, Charles F., and Arthur I Segel. "Technical Note on Financial Leverage in Real Estate." Harvard Business School Background Note 208-041, April 2012. (Revised from original August 2007 version.)