To calculate EGI, subtract vacancy and collection losses from the Potential Gross Income (PGI).
Economic occupancy refers to the percentage of rental income collected compared to the total potential income if every unit were leased at market rate.
This fee serves as compensation to the landlord for the potential loss of rental income resulting from the unplanned vacancy.
It consists of two separate units within a single structure. These units often share walls.
It involves thoroughly analyzing and verifying information about a property to make informed investment decisions.
This arrangement means the agent has fiduciary responsibilities to both parties, creating a delicate balance that must be managed with transparency and integrity.
A down payment in real estate is the initial amount paid when purchasing a property. It is often represented as a percentage of the home's total price.
Real estate investor distributions refer to the payments made to investors from the income generated by the property's operations or sales.
In real estate, the IRS allows property owners to claim depreciation as a tax deduction. This reduces their taxable income and potentially provides significant tax benefits.
