Investment Analysis
Analysis of the risks and rewards to an individual in making a particular property investment. Investment analysis considers the cost of the original investment, the investment return over a period of time, the suitability of the investment and the probability off success. Investment analysis requires many financial methods including:
- Capitalization rate.
- Break-even formulas>
- Cash flow ratios.
- Cost of capital.
- Cost of credit.
- Future (compound) value.
- Payback period.
- Present value.
- Repairs and maintenance ratios.
Popular Real Estate Terms
A minimum amount a lender is willing to provide on a commercial loan for a building designed to be tenant occupied. A floor loan is progressively funded as the building moves from the ...
The right to allow livestock to graze on a certain range or grazing lands. Grazing rights can be obtained through a lease or by contractual agreement stipulating the period of time and the ...
The direction in which a community is growing. Directional growth is measured over time, and its path strongly influences current and future market values of those properties clearly in ...
An iron pipe, stone, tree, or other fixed point used in making a survey. ...
Having two families live in a residence designed for only one family. This violates single-family residence zoning. ...
House design to be easily expandable. ...
Availability of land in an urban area. ...
Trying to resolve a problem between two individuals up with some compromise or common ground. It occurs more often during times of poor economic conditions. An example is a creditor ...
The third-party definition refers to an individual or entity in a transaction but is not the buyer or the seller. Usually, a third party has some role in the transaction. They do not have ...
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