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14 Cards in this Set
- Front
- Back
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Appreciation |
An increase in the worth or value of property |
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Asset |
Anything of value |
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Basis |
An investor’s initial cost of a property |
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Capital gain/loss |
The difference between the adjusted basis of property and its net selling price |
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Cash flow |
The total amt of money generated from an investment after expenses have been paid |
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Equity |
The property’s value minus debt |
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Going concern value |
Value of an established business property compared w the value of just the physical assets of a business not yet established |
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Goodwill |
The intangible asset attributed to a business’s reputation and the expectation of continued customer loyalty |
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Leverage |
Use of borrowed funds to finance the purchase of an asset |
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Liquidation analysis |
Valuation method used for a business that is going out of business |
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Liquidity |
The ability to sell an investment quickly without the loss of one’s investment |
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Real estate investment trust |
Offers investors the opportunity to invest in a pool of income producing properties under professional management |
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Risk |
The chance of losing all or part of an investment |
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Tax shelter |
An investment that shields income from payment of income taxes |
