OPM

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OPM

Stands for "other people's money," which refers to borrowed funds used to increase the return on invested capital.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Other People's Money

Informal term for the use or investment of borrowed funds. For example, a bank uses OPM to lend to its borrowers as the money it uses for loans (theoretically) comes from its deposits.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

other people's money (OPM)

A common expression used when talking about the multiplying effect of using borrowed funds to purchase property rather than paying all cash. Investors will say, “I'm using OPM for the deal.”

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
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