Investments with multiple sources of return
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Mix of all 3 (income, appreciation, and value gain) could be a dividend-
paying common stock, that could provide steady dollar income, some
degree of appreciation from inflation, and possible value gain from the
profitable growth of the company.
Another example: income property, such as an Apartment building
Fixed expenses
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, remain stable regardless of occupancy (as opposed to operating
expenses)
Legal Life Estate
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Life estate created by law; examples include homestead and dower's rights
Future Interests
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right to a property that allows possession at some future time
For single cash flows, the present value is the ___________ the future value
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Inverse of
Gross Rent Multiplier (equation)
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, - GRM = gross scheduled income / Purchase price
- investors use GRM to compare a subject property to comps
Value gain
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is an increase in an investment's value resulting from scarcity and price
inflation
What is one discount point equal to?
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1% of the Loan amount
Break even ratio (equation)
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break even = (operating expenses + debt service)/potential gross income
Operating Expense Ratio (equation)
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Mix of all 3 (income, appreciation, and value gain) could be a dividend-
paying common stock, that could provide steady dollar income, some
degree of appreciation from inflation, and possible value gain from the
profitable growth of the company.
Another example: income property, such as an Apartment building
Fixed expenses
Give this one a try later!
, remain stable regardless of occupancy (as opposed to operating
expenses)
Legal Life Estate
Give this one a try later!
Life estate created by law; examples include homestead and dower's rights
Future Interests
Give this one a try later!
right to a property that allows possession at some future time
For single cash flows, the present value is the ___________ the future value
Give this one a try later!
Inverse of
Gross Rent Multiplier (equation)
Give this one a try later!
, - GRM = gross scheduled income / Purchase price
- investors use GRM to compare a subject property to comps
Value gain
Give this one a try later!
is an increase in an investment's value resulting from scarcity and price
inflation
What is one discount point equal to?
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1% of the Loan amount
Break even ratio (equation)
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break even = (operating expenses + debt service)/potential gross income
Operating Expense Ratio (equation)
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