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.
CAD is an acronym that can stand for 'Cash Available for Distribution,' 'Central Appraisal District,' or 'Computer-Aided Design,' all of which are pertinent in different realms of real estate and related industries.
Cash Available for Distribution (CAD) is a key metric for assessing the financial performance of Real Estate Investment Trusts (REITs). It is derived from Funds From Operations (FFO), after deducting costs of recurring capital expenditures.
A CMO REIT is a type of Real Estate Investment Trust (REIT) that primarily invests in Collateralized Mortgage Obligations (CMOs), deriving its cash flow from interest and principal receipts on these securities.
Funds From Operations (FFO) is a key financial performance metric used by real estate investment trusts (REITs) to show the cash generated from their operations, which is then available for distributions to shareholders.
NAREIT is the preeminent organization that represents and advocates for real estate investment trusts (REITs) and publicly traded real estate companies in the United States. It plays a crucial role in education, advocacy, and research to promote the growth and understanding of REITs.
A Real Estate Mutual Fund is a regulated investment vehicle focused on investing in securities offered by real estate-related companies, including REITs, real estate development and management firms, and homebuilders.
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