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Real Estate Glossary

Compounding

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Written by Luis Escobar

This refers to a type of calculation wherein interest earned is reinvested, therefore earning additional interest. Over time, it will generate even more interest. Experts describe it as a “snowball effect” because as your wealth grows, your returns grow more rapidly.

This refers to a type of calculation wherein interest earned is reinvested, therefore earning additional interest. Over time, it will generate even more interest. Experts describe it as a “snowball effect” because as your wealth grows, your returns grow more rapidly.

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Luis Escobar

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