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8 Cards in this Set
- Front
- Back
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Main types of REDPP
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1.Residential property
2.Commercial 3.Industrial 4.Govt assisted housing 5.Condominiums(time shares) 6.Raw land-Speculative |
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Main deductions on a REDPP
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1.Depreciation
2.Interest *Principle is NOT deductible |
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Main advantages of a REDPP
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1.Capital appreciation potential
2.Tax deferral 3.FLow thru of inc and exp 4.Limited liability |
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Factors to consider when inv in a REDPP
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1.Forecast of regional exonomic conditions
2.Changes in int rates 3.Changes in tax law 4.Qaulifications of a GP/management expertise 5.MV of adjoing property |
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Sale and leaseback transaction
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Occurs when a real estate property owner sells their property and leases it back from the new owner. The rental or lease payments are deductible for the person making them and the new owner can depreciate the land
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Triple net lease
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Tenant is responsilbe for paying property taxes, insurance, and operating and maintenance expenses
*Debt service is paid by the OWNER |
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LPs loss/gain calculation
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Revenue - all deductions = loss
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LPs cash flow calculation
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Revenue - all deductions(except depreciation) = cash flow
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