An abstractor is responsible for evaluating and summarizing the history of a property's title. They ensure it is free of legal obstacles that could hinder ownership transfer.
It occurs when external factors, such as economic downturns or changes in societal trends, reduce the worth of a real estate property.
Cap rate is a real estate-specific metric assessing potential profitability. It is calculated by dividing the net operating income by the current market value of the property.
A 1033 exchange in real estate is a unique tax provision. It allows property owners to defer capital gains taxes when their property undergoes an involuntary conversion.
XIRR, or Extended Internal Rate of Return, offers a more nuanced analysis by accounting for the actual timing of cash flows.
In a European Waterfall Structure, the limited partners must receive a full return of capital and a preferred return before the general partner can claim any carried interest.
This approach to distributing investment returns involves multiple tiers or hurdles. These tiers allow both investors and managers to receive profits at different stages. By outlining how cash flow is dispersed among stakeholders, the structure aligns interests and sets clear performance benchmarks.
Plottage refers to the increase in property value resulting from the combination of adjacent land parcels.
A pad site is essentially a freestanding plot of land within the perimeter of a larger commercial development, specifically designed to attract businesses such as banks, restaurants, and retail stores.
