This type of exchange occurs when a property (referred to as relinquished property) is sold and another property (referred to as replacement property) is bought. It happens within 180 days following the sale of the relinquished...
Latest Posts
Cash (or Funds) Available for Distribution
Also known as CAD or FAD, this is the internal measure of a Real Estate Investment Trust's (REIT) ability to pay out and use dividends for its shareholders. To calculate its value, find the funds from operations (FFO) and...
Full Service Rent
This is an extensive rental rate that comprises operating expenses and real estate taxes for the first year. Typically, the tenant is still the one responsible for the increasing operating expenses over the base year amount.
Capitalized Earning Approach
Also known as Capitalization of Earnings, this is a common method of valuing a business based on its future estimated benefits. It normally uses a measure of earnings or cash flow that is generated by the company. Subsequently...
Distraint
This is an act of a landlord wherein they seize a tenant's property either legally or illegally. It is often done to satisfy defaulted rent payments.
Equal Credit Opportunity Act
This is a federal law forbidding lenders from utilizing a consumer's color, race, national origin, religion, marital status, or gender as a factor for loan approval. It requires fairness and impartiality on the part of the lender...
Basis Points (BP’s)
Also referred to as beeps, points, or BPS, basis points are values that equate to one-hundredth of one percentage point or .01. They represent the smallest unit of measurement used for interest rates and other financial...
Capital Improvement
This is any major and permanent development or redevelopment to a property that will add to its value or extend its life. This can range from certain improvements such as elevator upgrades and roof replacement to complete...
Accord and satisfaction
This refers to an arrangement to dismiss a claim in which both parties agree to give and accept a different performance that is usually less than what was originally required or owed. So long as both parties meet their new terms...
Gross returns
These are produced from the activity of real estate, with no dilution for manager or adviser fees.
