Investment Real Estate Flashcards
What is assemblage?
Assemblage is the combining of more than one parcel.
What is plottage?
Plottage is the increase in value after assemblage. 2+2=5
What is a percentage lease?
AKA overage lease or percentage lease.
A minimum (base) rent is charged plus a percentage of the tenants gross sales over a predetermined threshold.
What is a Net Lease
NNN - tenant is responsible for taxes, maintenance, and property insurance.
What is an index lease?
Rent is based on some published index such as the consumer price index.
What is a typical commercial real estate mortgage.
15 yr amoratized mtg with a 5 year balloon.
What happen when a loan constant is great than the cap rate.
the equity Dividend rate is negatively affected.
What is sensitivity analysis
When you change the underlying terms of a mortgage to make a property work financially.
What is static risk?
Static risk is risks associated with storms, floods, theft, liability claims. Static risk can usually be covered by insurance.
