MIRR resolves issues with IRR by incorporating a more accurate reinvestment rate. This provides a more realistic picture of an investment's potential profitability.
Pari passu means equal treatment of parties, ensuring each investor holds the same claim or right in terms of profit distribution and risk allocation.
These groups provide a platform for investors to engage in non-public securities without needing SEC registration.
UPB, or Unpaid Principal Balance, represents the portion of a loan, such as a mortgage, that has not yet been repaid to the lender.
This arrangement allows lenders to charge reduced interest rates on loans in exchange for a share of the property's future income or value.
MOIC is calculated by dividing the total cash flow received from an investment by the initial amount of invested capital.
A defeased bond is a bond that has been rendered essentially risk-free. This is done by setting aside sufficient assets in a trust to cover all future payments of principal and interest.
In real estate, "unsubordinated" refers to a debt or lien that holds priority over other claims on the same property.
In real estate, HTC often stands for Historic Tax Credit, a powerful tool for property owners and investors.
