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10 Cards in this Set
- Front
- Back
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the residual claim on the property's cash flow after the mortgage lender and the state and federal government has collected its share.
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after tax cashflow
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the capitalization rate for equity. it is derived by dividing the before tax cash flow by the value of the invested equity capital. sometimes referred to as the property's dividend/yield rate.
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equity dividend rate
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a cash flow multiplier calculated as the acquisition price divided by the net operating income.
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net income multiplier
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a measure of annual operating costs, defined as operating expenses divided by effective gross income.
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operating expense ratio
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an amount proportionate to the ownership interest of an investor.
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pro rata share
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the use of mortgage debt to help finance a capital investment.
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leverage
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the expected stream of NOI's and the exprected net sale proceeds. this represents the income producing ability of the property before subtracting the portion of the cashflows that must be paid to the lender to service or retire the debt.
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unlevered cash flows
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the proeprtys net rental income after subtracting any payments due to the lender.
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levered cash flows
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annual net operating income less annual debt service.
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before tax cash flows
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the before tax equity reversion, define as net selling price minus the remaining mortgage balance, at the time of sales less taxes due on sale.
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after tax equity reversion
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