If an investor owned an equity position in a building and wanted to increase value using leverage he could do so by either leveraging the property or borrowing personally. However, leverage is usually applied at the property, not the personal level because:

1)	the investor could make the personal loan against cash flows from the property, leaving the property available as collateral for additional loans

2)	the investor cannot take personal loans to leverage an increased value based on cash flows

3)	leverage can be created cheaply from personal loans; it is not added value

4)	personal loans cannot be applied to cash flows; only to real property