Leverage is considered to be which of the following processes?

Leverage refers to the use of borrowed capital to increase the potential return on investment. In real estate, this often means purchasing a property using a loan, allowing an investor to acquire a property whose value far exceeds the amount of their initial investment or down payment. By using leverage, investors can control larger assets and maximize their returns, as any appreciation in the property value is calculated on the total value of the property rather than just the amount they invested.

In this context, the correct choice reflects the nature of leverage, showcasing how it enables a buyer to take on more significant financial exposure while investing a smaller amount of their own money. This approach can amplify both gains and losses, depending on market fluctuations, but historically, it has been a common strategy in real estate investing to enhance profit potential.