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| someone other than the owner who supervises the operation of income property in exchange for a fee |
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| investor takes an ownership interest in an asset such as in real estate and stocks |
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a loan that an investor makes to an individual or entity such as a bond, which is a debt owned to an investor by a government entity or corp.
Another example is an ordinary mortgage loan |
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| total return on an investment |
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| investments have 3 potential characteristics/advantages: |
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1. safety
2. liquidity
3. yield |
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| the advantages of investing in real estate are broken down into 3 general catagories: |
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1. appreciation
2. leverage
3. cash flow |
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| the difference between the value of the property and the liens against it |
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| using borrowed money to invest in an asset |
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investors use this term to refer to a property's first year cash flow divided by the initial investment
it pinpoints the ratio between cash invested (equity) and cash received |
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| 4 basic types of income-producing properties: |
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Definition
1. residential rentals
2. office buildings
3. retail property
4. industrial property |
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| creates an agency relationship between the manager and the owner |
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| outlines the manager's strategy for financial management and physical upkeep, and focuses on achieving the owner's goals |
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| when there are more units than potential tenants available |
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| when there are enough potential tenants, but they are unable to pay current rent |
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| more potential tenants than units available |
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| when there are more able-to-pay tenants than units |
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| preserves the physical integrity of the premises and reduces corrective maintenance costs |
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| actual repairs that keep equipment, utilities, and amenities functioning properly |
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| a transfer of the leashold estate for a period shorter than the unexpired term |
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refers to a sublease situation where the original tenant is a middleman between the sublessee and landlord;
sublessee pays original tenant who pays landlord |
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| filed with the courts to evict a tenant who has recieved notice of nonpayment and still fails to pay |
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| 'writ of restitution' is AKA |
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| if courts find the tenant in default after unlawful detainer action has been filed, the writ is issued, which requires the tenant to move out peacably or be forcibly removed by the county sheriff |
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| 'fixed lease' is AKA (3): |
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Definition
1. flat lease
2. straight lease
3. gross lease |
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1. fixed lease
2. graduated lease
3. percentage lease
4. net lease
5. ground lease |
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fixed rental amount
(tenant pays fixed sum; usually landlord obligated to pay all utilities, maintenance costs, taxes, insurance) |
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like fixed lease, except provides for periodic increases in rent, usually set at specific future dates and based often on Consumer Price Index, etc.
requires escalation clause |
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| 'graduated lease' is AKA (2) |
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| step-up lease or an index lease |
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| requires tenant to pay landlord a fixed rent, plus some or all of operating expenses (often commercial) |
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| rent based on a percentage of gross or net income from tenant's business (often retail) |
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when a tenant leases land and agrees to construct a building
usually long-term & in metropolitan areas |
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| an asset that is expected to generate a return |
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| the mix of investments owned by an individual or company |
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| increase in value of an asset; genearlly due either to inflation or increasing scarcity or demand |
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| spendable income; the amount of money left after all property's expenses have been paid, such as operating costs, mortgage, taxes...) |
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| a list of rental rates for units in a particular building |
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| a contract for possession of real estate in exchange for payment of rent |
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| lease provision that ensures automatic renewal of lease unless tenant or landlord gives other notice of termination |
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| a report on rent collections; a list of a property's total rental income, both collected and uncollected |
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