The buildup rate is a method to develop a capitalization rate by adding the individual components contributing to the risk and return of an investment. It offers a systematic approach to evaluate the total return expected for real estate investments.
Collateral Underwriter® (CU™) is a proprietary appraisal risk assessment application developed by Fannie Mae to enhance appraisal quality. CU™ provides automated risk assessment and supports proactive management of appraisal quality.
CoreLogic is a leading provider of data and analytics for real estate, offering comprehensive information on property value, mortgage, risk assessment, and more. CoreLogic's REALQUEST platform delivers detailed reports and insights critical for real estate professionals.
The cost of capital is the rate that must be paid to attract sufficient funds for an investment venture. It is crucial for decision-making in finance, reflecting the opportunity cost of using funds over some alternatives.
Financial transparency in real estate involves the full disclosure and public reporting of financial activities, allowing outsiders to accurately estimate risk and forecast income from investments.
The loan-to-value (LTV) ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. Typically expressed as a percentage, LTV ratios are used to assess the risk involved in a mortgage or loan agreement.
Sensitivity analysis is a method used in investment analysis to determine how different values of key variables impact the outcomes of an investment. This technique helps in assessing the riskiness of an investment by testing how changes in assumptions affect investment results.
In a title insurance policy, a title exception refers to a statement detailing items or conditions that are not covered by the policy. Understanding these exceptions is crucial for assessing potential risks before purchasing a property.
