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
Certification granted by the Realtors National Marketing Institute, which is affiliated with the National Association of Realtors. ...
Contractual clause freeing a party from personal liability. Foe example, an exculpatory clause in a mortgage agreement provides a mortgagor the ability to surrender a mortgage property in ...
Supervisor of the operation of apartments while residing in one of the apartments. Some responsibilities include showing vacant apartment to prospective tenants and assuring that the ...
Structure not directly belonging to a property but considered a part of it through the use of an easement of common consent. ...
Bank modifies the borrower's mortgage obligation, such as when the bank approves the homeowner's request for an extension of time to pay because of illness or loss of a job. One's ...
Time period for which one expects to keep property such as a real estate investment. ...
Provision in a mortgage that requires the final payment to be substantially more than all other payments. ...
The use of borrower funds by people or business to increase the return on an investment. Examples are a mortgage to purchase real estate and buying real estate stock on margin. ...
Warranties issued by contractors, sellers, and real estate agencies that protect home buyers from specified defects in a house as per the contract. ...
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