Net Present Value (NPV)
Definition of "Net Present Value (NPV)"
The difference between the present value of cash inflows generated by real estate and the amount of the initial investment. The present value of future cash flows is computed using the cost of capital (minimum desired rate of return, or hurdle rate) as the discount rate.
Popular Real Estate Terms
Ownership interest in property that is above the minimum needed to meet uncertainties or a downward trend in real estate market. ...
Lien on a given property, such as an person's house as a collateral for a loan. ...
Mortgage in which the interest rate charged by the lender can vary according to some reference index not controlled by the lender, such as the interest rate on 1-year U.S. T-bills or the ...
Real property that is without any obligations, liens, or anything else against it. It is free and clear such as a house without mortgage. ...
Right of a property owner located adjacent to an airfield to use the airspace above a certain distance to fly an airplane. However, the owner may not be allowed to put structures, signs or ...
Also called a will. Describes the disposition of property. ...
A type of equity participation loan where, in exchange for charging a below-market interest rate, the lender receives a predetermined percentage of a any increase in value of the property ...
Amount to be paid by a person or business for violating a statute or legal court order. It may also be assessed for violating the provisions of a contract. Examples of penalties are a ...
External front wall to a structure ...
Have a question or comment?
We're here to help.