Finance General Flashcards
Review the fundamentals of real estate finance, including lending practices, financial instruments, and regulatory requirements.
Which real estate term is this?
A tax-based process for exchanging properties for others of ‘like kind’ without immediate capital gains taxes.
1031 Exchange
Which real estate term is this?
The base taxable value of a property after accounting for improvements and depreciation.
Adjusted Tax Basis
Which real estate term is this?
A gain in value of an item or property over time.
Appreciation
Which real estate term is this?
Means a payment on an account has been missed.
Arrears
Which real estate term is this?
The value established for tax purposes by local jurisdictions, often related to market value.
Assessed Value
Which real estate term is this?
Where a foreclosed property is sold to the highest bidder, often with a minimum amount required.
Auction
Which real estate term is this?
Computer-generated loan underwriting that processes simple applicants quickly.
Automated Underwriting
Which real estate term is this?
The threshold in a commercial lease where revenue exceeds the base rate.
Breakpoint
Which real estate term is this?
Any form of kickback to the buyer for making a purchase, legal but sometimes limited in most states.
Buyer Rebate
Which real estate term is this?
A bank offering services like taking deposits, issuing loans, and providing basic investment products.
Commercial Bank
Which real estate term is this?
Payment a real estate broker receives as compensation for facilitating real estate sales, often a percentage of the sale price.
Commission
Which real estate term is this?
Items suitable for barter and exchange, like gold, silver, peppercorns, and cocoa beans.
Commodities
Which real estate term is this?
The amount of a home’s market value less the total amount owed on it.
Equity
Which real estate term is this?
Allows borrowing against home equity, often considered a second mortgage.
Equity Loan
Which real estate term is this?
A form of investment vehicle used to package multiple home loans into financial instruments, which are then sold to investors on secondary money markets.
Mortgage-backed Securities
(MBS)
Which real estate term is this?
This document represents economic value to the holder, such as a check or mortgage loan.
Negotiable Instrument
Which real estate term is this?
Total income generated after subtracting operating expenses.
Net Operating Income
(NOI)
Which real estate term is this?
Accounting process of comparing records to ensure financial accuracy.
Reconciliation
Which real estate term is this?
Credit model allowing reuse after payments, like credit cards.
Revolving Credit
Which real estate term is this?
Financial institutions focusing on savings deposits and mortgage loans.
Savings and Loan Associations
Which real estate term is this?
Method for avoiding foreclosure by selling property for less than owed.
Short Sale
Which real estate term is this?
The decision by a borrower to stop payments on a debt, despite having the ability to pay.
Strategic Default
Which real estate term is this?
Debt financing ranked lower in repayment priority than secured lenders.
Subordinate Finance Instruments
Which real estate term is this?
Created through instructions in a deceased’s will, effective upon death.
Testamentary Trust
