Debt service refers to the periodic payments, typically consisting of both principal and interest, made on a loan. It is a crucial concept in real estate finance and investment, as it impacts cash flow, profitability, and overall financial health of a property or investment.
A level annuity is a financial product that provides a series of equal periodic payments for a specified period, typically in retirement planning or loan schedules.
Operating Capital refers to the funds required to finance the day-to-day activities of a business. It is otherwise known as working capital and is essential for maintaining the operational liquidity necessary for running regular business operations.
Periodic cash flow refers to the regular intervals of revenue generation and expenses within a specific timeframe for a real estate investment, providing insights into the liquidity and profitability of the property.
The reinvestment rate is the interest rate an investor is assumed to be able to earn on intermediate cash flows in the projection of a terminal value.
Spendable Income refers to the amount of cash flow that property owners receive after all operating expenses, mortgage payments, and taxes have been deducted.
