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lev·er·age [lev-er-ij, lee-ver-] Pronunciation Key – Show IPA Pronunciation noun, verb, -aged, -ag·ing.
||the action of a lever.
||the mechanical advantage or power gained by using a lever.
||power or ability to act or to influence people, events, decisions, etc.; sway: Being the only industry in town gave the company considerable leverage in its union negotiations.
||the use of a small initial investment, credit, or borrowed funds to gain a very high return in relation to one’s investment, to control a much larger investment, or to reduce one’s own liability for any loss.
–verb (used with object)
||to exert power or influence on.
||to provide with leverage.
||to invest or arrange (invested funds) using leverage.
Pay special attention to definition option 4. It’s your word of the day when it comes to real estate investing.