REIT purchasing properties using 100% debt

jackp10's picture
Rank: Senior Chimp | banana points 24

Can REITs purchase properties using 100% debt? I know a lot of them are highly leveraged. Can REITs in the single family rental market acquire properties using 100% of debt capital that they have raised. Does a down payment have to be made for every property.

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Comments (2)

Mar 11, 2019

guess it depends on what you refer to as debt. lots of REIT's use their credit revolver as a way to close fast and efficient. however, usually revolvers are meant to be paid back very quickly...think of them like using a credit card. But in those situations...it is 100% bought through the revolver and thus 100% bought through debt.

Mar 11, 2019