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Real Estate Investments
Mid Term
15
Real Estate & Planning
Undergraduate 4
10/15/2006

Additional Real Estate & Planning Flashcards

 


 

Cards

Term
Risk Return Tradeoff Principle
Definition
The principle that potential return rises with an increase in risk. For a given level of risk an investor must be able to accept the corrosponding level of risk.
Term
SIU
Definition
Person who has 1 unit of surplus income
Term
Primary Market
Definition
Maket in which investors first have the oportunity to buy a newly issued security
Term
Expectations Theory
Definition
Future interest rates are determined by the future rate of expected future inflation.
Term
market segmentation theory
Definition
suggests there are two or more markets for securities with different maturities
Term
REIT Real Estate Investment Trusts
Definition
consists of purchasing stock in a corporation that in turn purchases real estate properties, mortgages on real estates, or a combination
Term
disintermediation
Definition
withdrawl funds from a financial intermediary in order to invest in instruments yielding a higher return.
Term
Real Estate Limited Partnerships (RELPS)
Definition
Limited Partnerships that provide limited liability to the partner-investors, just as a corporate stock does.
Term
Mortgage-Backed Securities
Definition
securities backed by pools of mortgages
Term
Collateralized Mortgage Obligations (CMO's)
Definition
A type of mortgage backed security that creates separate pools of pass-through rates for different classes of bondholders with varying maturities, called tranches. The repayments from the pool of pass-through securities are used to retire the bonds in the order specified by the bonds prospectus.
Term
(CMBS) Commerical Mortgage Backed Securities
Definition
that is collateralized by a pool of commercial properties.
Term
Alternative Mortgage Instrument (AMI)
Definition
Residential mortgage loan that differs from a fixed-rate, fully amortizing mortgage in the interest rate, the monthly or periodic payments, or the terms of repayment.
Term
(IOs)
Definition
The rights to recieve interest only payments from the interest part of a securtity
Term
(POs)
Definition
The right to recieve Principle only from a security
Term
Servicing Rights
Definition
a financial intermediary services a mortgage and collects part of the fee
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