Accelerated amortization refers to the practice of making larger payments towards the principal amount of a loan than is required by the contractual payment schedule. This results in shortening the loan term and reducing the total interest paid over the life of the loan.
Arbitrage in real estate involves buying and selling properties, or financial instruments linked to real estate, in different markets to profit from price differences. This strategy can also include leveraging financial instruments like REITs or mortgage-backed securities to exploit discrepancies in pricing.
Cash Flow Analysis assesses the inflows and outflows of cash in a business or investment over a specific period, aiding in financial strategy and decision-making.
The term 'Cash Out' refers to the process of completely liquidating an asset, enabling the owner to receive its total monetary value in cash.
Negative leverage, also known as reverse leverage, occurs when the cost of borrowing exceeds the income generated by an investment, resulting in a lower overall return.
Positive leverage refers to the use of borrowed funds that enhances the return on investment. It indicates that the cost of borrowing is lower than the return generated by the investment.
A synthetic lease is a financial arrangement where the lessee assumes complete responsibility for the property, including all risks, costs, and obligations, while the lessor receives a fixed rent.
