Martial Law
1) the use of borrowed money to purchase real estate or business assets, usually involving money equaling a high percentage of the value of the purchased property. 2) to borrow most of the funds necessary as a loan against real estate to buy other real estate or business assets. the dangers of high leverage are over-appraisal of the property to satisfy a lender, a decline in the value of the property (which may have been purchased during a period of high inflation), high carrying costs (interest, insurance, taxes, maintenance) which exceed income, vacancies and/or inability to finance improvements to increase profits. too often the result is the collapse of “paper” real estate empires which have been created by risky leveraging.
