What is Adjustable Life Insurance? Adjustable life insurance, also known as universal life insurance, is a type of permanent life insurance that lasts your entire life if premiums are paid. It allows you to adjust premiums, death benefits, and the cash value, which grows over time and can be accessed […]
What is Absorption Rate? The absorption rate shows how fast homes are selling in a specific area over a set time, like a month or year. It’s key for real estate investors to gauge market demand and supply balance. Key Points How is it Calculated? You calculate it by dividing
What is a Ballpark Figure in Real Estate? A ballpark figure is a quick, general estimate used in real estate to approximate a property’s value, renovation costs, or operating expenses. It’s not precise but gives investors a starting point to decide if a deal is worth pursuing. For example, if
What is Channel Stuffing? Channel stuffing in real estate is a deceptive practice where developers push more properties into the market than there is actual demand for, often to meet financial targets or impress investors. This can create an illusion of higher sales, but it poses risks for investors, especially
What is Annuity Table? An annuity table is a financial tool that calculates the present and future value of structured payments made over time, such as rental income or mortgage payments. For real estate investors, this tool is crucial for making informed decisions about property investments and financing options. This
What is Counterparty Risk? Counterparty risk in real estate is the chance that someone in a deal, like a buyer, seller, lender, or tenant, doesn’t follow through on their promises. This could mean a borrower stops paying their mortgage, a tenant skips rent, or a developer doesn’t finish a project.
What is Autonomous Consumption? Autonomous consumption in real estate refers to the essential spending on housing, such as rent or mortgage payments, that people must make to maintain a basic standard of living, no matter their income level. This concept is crucial for real estate investors as it highlights a
What Are Articles of Association in Real Estate? Articles of association are the internal rules and regulations that govern how a real estate company operates. They define key aspects like the management structure, shareholder rights, voting procedures, financial guidelines, and directors’ responsibilities. For real estate investors, these documents are essential
What is Branch Manger A branch manager in real estate plays a vital role in ensuring a specific office within a larger company runs smoothly. This position is essential for real estate investors, as it directly impacts property transactions and management. Below, we break down their responsibilities and importance, especially
What is Adjusted EBITDA Adjusted EBITDA, or Earnings Before Interest, Taxes, Depreciation, and Amortization, is a key metric for real estate investors. It starts with standard EBITDA and adjusts for one-time or irregular items, providing a clearer picture of a property’s operational performance. This is especially helpful when comparing different
What Are Cash Balance Pension Plans? Cash balance pension plans are hybrid retirement plans that blend elements of defined benefit pensions and 401(k) plans. They provide a hypothetical account balance that grows through employer contributions (pay credits) and interest credits, offering a lump sum or annuity at retirement. For real
What is Bounced Checks? A bounced check in real estate happens when a payment check, like a deposit or rent, is returned by the bank due to insufficient funds. This can cause major issues, such as penalties, legal consequences, or deal cancellations, affecting investors significantly. Key Points Impact on Investors