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
Legal contract with a property owner empowering a real estate agent in selling, leasing, or mortgaging the principal's property. A listing has a legal description of the property, is valid ...
Time period of an estate based on how long a third party lives. ...
A situation that occurs when borrowed funds cost more than they produce. ...
When a debtor defaults on a loan for which a deed of trust is given, the trustee is required to have a sale of the real estate security for the benefit of the lender. A deed of trust is ...
Used ton convey property of a minor or legally incompetent person. ...
Any of a number of types of covenants agreeing to do or not to do something that is attached to the title and is passed form one owner to the next. See also covenant running with the land. ...
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Annual rate of inflation of 10% or higher. ...
Lumber of no more than 8 inches wide and 2 inches thick. ...
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