LBO on Real Estate companies

Hi,

I have a question regarding doing an LBO on a real estate company. How much do you consider LTV when deciding on how much debt / equity to use? Typically one wants to use a lot of debt from my understanding, but wouldn't that cause the LTV to sky-rocket? How should one balance this?

I suppose it would be hard to get financing to acquire a company that would give too high of an LTV but I'm not quite sure how that would work.

Thank you :) 

 

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