Debt Financing
Raising money by mortgages and borrowing the money directly from financial institutions. The presence of debt financing provides financial leverage, which tends to magnify the effects of increased operating profits on the individual and corporation's returns. Interest is tax deductible. Further, leverage is desirable as long as the borrowed funds produce a return in excess of their cost. However, to much debt can result in higher levels of financial risk in meeting the principal and satisfying interest payments. Excessive debt will make it more difficult to raise funds and will increase further borrowing costs.
Popular Real Estate Terms
income statement destroyed by a casualty such as a fire. This requires the reconstruction of the income statement based on source records, information, and documents. Income statement ...
Marketable title that is free of encumbrances and disputed interests. Clear title is essential in order to convey a general warranty deed in a transaction. ...
Process of simultaneously appraising several pieces of property. Normally, occurs when a local government conducts a reassessment. ...
Lienholder's statement as to the unpaid balance on a trust deed note. ...
Written document by an official granting agency and signed by an empowered official certifying that some specific act including the fulfillment of certain requirements has occurred on a ...
Opinion of a judge having no direct legal or binding effect on the outcome of a pending judicial decision. An obiter dictum is considered to be an incidental judicial remark about some ...
Loan in which two or more lenders participate in the total financing of a single mortgage. The lenders in a piggyback loan do not necessarily have equal shares. ...
Judicial order prohibiting a person or business from doing something. The court may issue this dictate when unlawful conduct or activity is occurring. ...
See annuity due. ...
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