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
Investment in residential properties by private businesses and people. ...
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A knowledgeable person authorized to aid in the underwriting of property and casualty insurance. ...
Two or more authorized brokers who agree to cooperate together representing a principal for the completion of a real property sale. ...
lender who charges an exorbitant interest rate, which is typically illegal because it exceeds the interest rate allowed in the state. A borrower may go to a loan shark if he cannot obtain ...
Regulation of the Securities and Exchange Commission (SEC) establishing the criteria to avoid a private offering. For example, John wants to sell shares in an apartment house to several ...
When an Appraisal is done, its ultimate goal is to define a Market Value for that property. So, in short, market value is the value of a real estate property in a free competitive ...
The Latin term pro rata has a significant meaning in legal, real estate as well as job industries. To define pro rata, anyone can take a quick vocabulary lesson. Any element that is split ...
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