Trading On Equity
Also called financial leverage. The use of borrower funds to magnify return. Trading profitably on the equity, also called favorable financial leverage, means that the borrowed funds generate a higher rate of return than the interest rate paid for the use of the money. The excess accrues to the benefit of the owner because it magnifies, or increases, his or her earnings.
Popular Real Estate Terms
Section of the Internal Revenue Code that addresses tax-free exchanges of certain property. The general provisions for a tax-free exchange of real estate are that the properties must be ...
Land zoned for industrial use including manufacturing, factory office and warehouse space, research and development. ...
Concept used in valuing real property that conditions may be altered requiring a revised estimate of market value. These conditions include a shift in the demand/supply relationship, ...
Time period for which one expects to keep property such as a real estate investment. ...
Current value of a future sum or stream-annuity or mixed-of dollars discounted at a given rate. Present value determination is the inverse of future value calculation. ...
Rental due on the leased property is formulated as a percentage of sales volume. There is typically a minimum rental specified. An example is a retail store that pays rental based on its ...
Money set aside for a possible loss, such as from a fire. ...
Identifying marker of a company. Attesting to something such as the validity of an instrument used in real estate. ...
The transfer of a property deed to the original owner upon the satisfaction of a mortgage. A reconveyance is accomplished through a reconveyance deed. For example, upon making the final ...
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