Built-up Method
Approach to determining a capitalization rate for use in valuating property so as to arrive at a suitable purchase price. To the risk free interest rate is added a risk premium to cover the greater risk. If the risk free rate is 6% and a risk premium of 35 is necessary to compensate for the properties poor liquidity, the built-up total capitalization rate would be 9%.
Popular Real Estate Terms
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Main street having a divider either in the center or between the curb and sidewalk with trees, grass, or other shrubbery. ...
Federal agency providing home financing to qualified people in low-income, rural areas. ...
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member of the National Association of Real Estate Brokers, Inc. ...
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generic name of the form used to file taxes payable to a federal, state, or local government. The tax return includes items such as gross income, deductions, tax credits, and tax due. ...
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