REIT purchasing properties using 100% debt

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.

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 is 100% bought through the revolver and thus 100% bought through debt.

Mar 11, 2019