These tenants are typically big-name retail chains that drive foot traffic, enhancing the appeal of the location to other smaller businesses.
An annuity factor is a multiplier used to calculate the present value of a series of equal periodic payments, such as rental income, over a specified period.
In the realm of real estate finance, a carveout is an essential provision in a loan agreement. It affects the liability structure of a non-recourse loan.
An escrow holdback is a financial arrangement where money is set aside by a neutral third party, usually at a home’s closing, to ensure completion of specific repairs or conditions post-sale.
A partially amortized loan is a popular option in real estate financing. It combines lower monthly payments with a substantial final payment, known as a balloon payment.
In real estate transactions, buyers often pay an earnest money deposit to demonstrate their commitment to purchasing the property.
An earnest money deposit is a sum of money put down in good faith to demonstrate serious intent to purchase a property.
One basis point is equivalent to 0.01% of a percentage point, making it an essential tool for investors and analysts to express small changes in value with clarity.
In simple terms, it involves assessing the risk and potential returns of investment properties.
