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
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Loan such as a mortgage that the borrower has consistently made payments on when due over many years. The borrower has proven his creditor worthiness. ...
Owned by one individual or sole ownership. ...
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Amount the taxpayer gets back when he or she files the tax return at the end of the reporting year because taxes were overpaid for that year. The tax overpayment equals the tax payments ...
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