The app for independent voices

Thank you for making this article available. With real estate investments, we call ROIC>WACC Positive Leverage (cost of borrowing is less than the CAP rate or reverse of P/E). Think of a bank with the ability to borrow from the FED at a discount rate of say 2% and buy US Treasuries that yield 4%.

Feb 2, 2023
at
4:21 PM

Log in or sign up

Join the most interesting and insightful discussions.