by Rene | Nov 24, 2009 | Real Estate Terms
The Debt Coverage Ratio or DCR is the lender’s primary way of generating lender safety when making a loan on an income property. The DCR will specifically calculate the maximum amount of loan that the lender should make for any given income stream. Why Lenders Think...
by Rene | Nov 24, 2009 | Real Estate Terms
The “cap rate” is used by informed real estate investors to estimate the value of an income producing property. It shows the productivity of an income producing property. How Calculated: The cap rate is the relationship between Net Operating Income and the value of...
by Rene | Nov 24, 2009 | Real Estate Terms
A 1031 tax deferred exchange is a type of real estate transaction defined in the Internal Revenue Code (Section 1031). Opportunity: For a long-term real estate investor, it is possible to: 1. sell a rental property; 2. at closing have the sale proceeds assigned to and...
Recent Comments