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What is the difference between a levered and non-levered property?
What is the difference between a levered and non-levered property?
Korin Hedlund avatar
Written by Korin Hedlund
Updated over a year ago

Levered:

  • A levered property means it was purchased with a mortgage

  • Arrived uses leverage conservatively, generally 50-70%, interest only, etc

  • More volatile returns - appreciate potential is higher, but the risk of loss is higher

  • levered no recourse to investors

  • Meaning appreciation potential is higher, but the risk of loss is higher

Non levered:

  • Does not include a mortgage

  • Typically more stable, consistent, anticipated returns do not fluctuate as quickly

  • Unlevered is more stable/consistent and won't go up as fast or down as fast

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