Capitalization
Definition of "Capitalization"
(1) Multiplying the average gross or net operating income of rental property by an appropriate factor to determine the value of the property. The capitalization rate depends on factors such as neighborhood, stability of rental payments, risk, quality of tenants, historical occupancy rate, etc. (2) To take advantage of something such as capitalizing on a buying opportunity of a house. (3) Charging expenditures made to an asset such as charging the cost of a house with a new roof. (4) Recording leased property as an asset.
Popular Real Estate Terms
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Proportionate share of an item to total items in the population. ...
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Also called demand note. A loan with no established maturity period, callable on demand by the lender for repayment. The interest on this type of loan is calculated on a daily basis and ...
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Null or void something; Revoke or destroy; rescind or set aside; abandon; abolish; repeal; surrender; waive; terminate. In real estate, to void a buy or sell order, price, or quantity. The ...
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