6 Terms
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Real estate investment
Industry: Financial services
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Real estate investment
rehabilitation expenditures
Financial services; Real estate investment
Rehabilitation expenditures are expenditures made to improve real property. Expenditures which were made for low-income housing after July 24, 1969, and before January 1, 1989, may be depreciated ...
renovation
Financial services; Real estate investment
Renovation is an investment technique of acquiring an older building that is in need of repairs and raising the rents after the repairs have been made.
reserves
Financial services; Real estate investment
In a group investment, reserves are funds from the proceeds of the sale of securities that are not invested but are set aside to provide for contingent needs for cash, such as taxes and insurance, ...
residual technique
Financial services; Real estate investment
Residual technique is a method for determining property value on the basis of an assumed land or building value. This technique is used with any of the capitalization methods to determine the value ...
return on cash investment
Financial services; Real estate investment
Return on cash investment is cash flow plus the principal payment on the mortgage.
risk
Financial services; Real estate investment
Risk is the possibility that the invested capital in an investment will be lost. For purposes of determining the overall capitalization rate, the risk is assigned a risk factor.
risk factor
Financial services; Real estate investment
Risk factor is a number, such as 1.5, that is assigned to the amount of risk involved in an investment for purposes of determining the overall capitalization rate of an investment.
