Investment Analysis
Analysis of the risks and rewards to an individual in making a particular property investment. Investment analysis considers the cost of the original investment, the investment return over a period of time, the suitability of the investment and the probability off success. Investment analysis requires many financial methods including:
- Capitalization rate.
- Break-even formulas>
- Cash flow ratios.
- Cost of capital.
- Cost of credit.
- Future (compound) value.
- Payback period.
- Present value.
- Repairs and maintenance ratios.
Popular Real Estate Terms
Method of selling and obtains possession, but the seller retains the title. ...
The term statute is a written law that is adopted by a legislative body from the country, federal, state, county, or city level. The statute definition can be a legislative written decree ...
Legal proceeding to exercise a right in a disagreement between private individuals or businesses. One party seeks a remedy against the other. It does not involve a criminal situation. ...
How much water may be retained in a unit, such as an expansion tank in a home. ...
See ordinary annuity. ...
Provision in a commercial lease providing a financial allowance for a tenant to finish the interior of a building according to individual requirements. ...
A method of purchasing real estate whereby a maximum amount of leverage is used. Normally the seller will finance the down payment necessary to acquire a mortgage. Thus, the purchaser is ...
The down payment on the price of a real estate. For example, it is customary to make a down payment of 10% of the value of a real estate parcel upon signing the purchase agreement. ...
The time period a real estate investment is held. The return is tied to the time period of the investment. The period is used for income tax purpose to determine whether a profit earned or ...
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