Income Stream
Cash earnings generated from a real estate investment or property. Cash earnings equals cash revenue less cash expense. The cash earnings may or may not be discounted to its present value by using a present value of $1 table depending on the user's needs and perspective. An example is a prospective buyer of an apartment house or office building who estimates the cash earnings to be generated by considering cash rentals to be received and cash expenses associated with the rental property. In so doing, the prospective owner can estimate what price to pay for the property.
Popular Real Estate Terms
A method of brick construction where the bricks are laid with their sides facing outward. ...
Earthquake insurance is the type of insurance policy that specifically covers damages to your real estate caused by seismic activities. It can refer both to the rare coverage against ...
(1) Occupancy rate at which rental income of a property pays for operating expenses and debt service, leaving no residual cash flow. (2) The level of sales of a real estate business where ...
Individual making the payments in a mortgage or pledging a mortgage or property. ...
When we talk about agency as a real estate concept, we understand the relationship between the real estate agent and the client. However, the term dual agency defines a type of agency that ...
Financial intermediaries who invest in deeds of trust and mortgages, and hold them in their own portfolio. Large financial firm that uses depositors' money to lend to borrowers. ...
The prime rate, a benchmark interest rate banks use, plays a significant role in the real estate market. Essentially, it’s the interest rate that commercial banks charge their most ...
Type of a real estate investment trust whose investment money is used for the purchase of a portfolio of specific properties to be managed in order to generate investment return through ...
Geographic location where a vacant or occupied structure exists. It usually means the land reserved is for a future building. ...
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