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
A simple box-shaped house with clapboard siding and a gable roof. ...
Trade group of predominately land developers. ...
Usually a fairly large site zoned and planned for the purpose of industrial development and located outside the main residential area of a city. Industrial parks normally are provided with ...
Putting a waterproofing substance on the exterior cement walls of the structure to prevent water from entering the interior of structure. The cracks in the walls are patched up. ...
Involves more than one borrower being responsible for a mortgage, such as with a cooperative apartment. Involves more than one mortgagee lent on a real estate project, such as with a ...
The basic definition of an acquisition loan is the kind of loan that gives a company the funds necessary to make a purchase. The type of investment depends on the company’s activity, ...
Registered real estate broker who charge a flat fee, rather than a commission, for real estate purchase and sale transactions regardless of the property's sale price. No fee is charge if ...
Worth of the property part which is left subsequent to a condemnation action. ...
The definition of abatement is a reduction of penalties or a tax deduction for individuals or businesses. It can often be accessed upon an overpayment of taxes, if the company or individual ...
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