What does note means in real estate?
A real estate note is simply an IOU secured by property. In a conventional real estate transaction, a buyer makes a down payment, obtains a loan, and signs a note promising to pay a certain amount each month to the lender until the loan, plus interest, is paid.
What is a good leverage ratio for real estate?
By aiming for a more conservative debt to equity ratio of around 3.0, an investor may still benefit from debt while generating returns with a lower level of potential risk.
Is LTV the same as leverage?
Leverage refers to the total amount of debt financing on a property relative to its current market value. Loan-to-value ratio is another commonly used term when discussing leverage. However, Loan-to-value ratio refers to the amount of a single loan, such as a mortgage as a percentage of the value of a property.