Using borrowed money to finance the purchase of real estate is known as:

Using borrowed money to finance the purchase of real estate is known as leverage. This financial strategy allows an investor to control a larger asset with a smaller amount of their own capital. By taking on debt, typically through a mortgage or loan, the investor can amplify their potential returns, as they can acquire properties that they may not have the immediate cash necessary to purchase outright.

Leverage can be a powerful tool in real estate investing because it allows individuals to increase their purchasing power and invest in multiple properties simultaneously. However, it also carries risk, as leveraging means increasing the liabilities associated with the investment, which can lead to higher financial losses if property values decrease or if cash flow from the property does not cover the debt obligations.

The other terms presented do not relate to the financing aspect. Larceny refers to theft, which is unrelated to financial investments. Conversion involves taking someone else's property and assuming ownership, typically in a legal context. Commingling refers to mixing funds of different entities, which can be illegal in the context of handling client funds in real estate transactions. These concepts do not pertain to the use of borrowed money to purchase real estate, making leverage the correct choice.