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
Loan guaranty program included in the Servicemen's Readjustment Act of 1944. Its provisions cover the compensation to lenders for losses they might sustain in providing financing to ...
Repairing the street for safety and attractiveness. In some localities, such as on Long Island, the home owner is responsible for properly maintaining the street surrounding his home. ...
Map presented to a municipality's planning agency by a real estate developer for consideration and approval. ...
Insurance based on the National Flood Insurance Program, enacted By Congress in 1968. The intent of this legislation is to provide insurance coverage for those people suffering real ...
Expert in real estate who has an education in real estate appraisal as well as having significant professional experience. A recognized license may be obtained from the Member Appraisal ...
Changes made by a lessee to property during the term of the lease. In general, if the changes are permanent such as the addition of a building to lease land, the ownership of the building ...
When someone throws around the term “mobile home”, it almost requires further explanation to fully understand what that person is talking about. Why is that? Well, one mobile ...
Innovative architectural designs for either single or multi level homes and other buildings incorporating innovative features, such as passive solar heating. Contemporary building plans ...
Inflation adjusted interest rate. ...
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