FAQ - FIN # 3: Why did Mr. Young over-leverage himself with debt?

Mr. Young  did NOT over-leverage himself. 

Virtually ALL of his properties were financed to be at no more than 50% loan-to-value ("LTV"), which is a conservative and prudent degree of leverage, especially given his access to millions in liquidity. His residence in Manhasset, NY was worth $1.2 million and had no mortgage -- and when he later expanded the living area by 25% and renovated the entire residence, the mortgage was $600,000 making its value $1.8 million or 33% loan-to-value. 

He purchased his Meadowmont condominium with ALL cash, and when he financed out equity (for redevelopment work), it was 50% loan-to-value. When he purchased The Pit Stop of Durham, it was done so at less than 50% loan to purchase price, and his purchase of The Courtyard of Chapel Hill reflected significant upside such that its stabilized LTV was to be less than 50%

Had Mr. Young not been subjected to the extensive MorganStanleyGate cover-up transgressions in NC, his net worth of $46.5 million would have reflected an aggregate loan to value of roughly 20% . . . hardly highly leveraged by any measure.