From the course: Pre-investing: Before Investing in Real Estate
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Components of debt - Microsoft Excel Tutorial
From the course: Pre-investing: Before Investing in Real Estate
Components of debt
- Hey, welcome back. In this section, we're going to explore the concept of debt financing or also known as leverage in investing. Now, there are two main types of debt financing for investments. An interest only and the fully amortized. We're going to look at both. We're going to see what is different between them and ultimately, why you should care about debt financing as an investor. First, we're going to look at what makes them different conceptually and then, we're going to look at what the numbers look like when we factor it in into an actual investment analysis. Finally, we're going to discuss some important implications of leverage on investment returns and how it may effect your investment returns as an investor. Alright, let's dive in.
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