Need more cash? How much are you leveraged?

[Max Emory]

How much are you LEVERAGED? Do you know?

If not, calculate your entire portfolio's/business's loan-to-value (LTV). As in, what's the principal balance of all of the loans you have within your business? Divide that number by the estimated value of your portfolio/business.

Example:
$1M Loan balance DIVIDED BY $2M Portfolio or Business Value = 50% LTV (underleveraged for most businesses)

There's a "healthy" leverage percentage for each industry. But, at the end of the day, this greatly depends on your risk tolerance and goals for your business/portfolio.

Find your individual "healthy" leverage percentage. If you are under that marker you are "under leveraged" and may want to consider getting more cash into your business via some additional loans or refinancing some of your current loans as long as your cash flow will still remain healthy.

I hope this helps!
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Real Estate Investor | Bookkeeper & CFO | USMC Veteran