click below
click below
Normal Size Small Size show me how
Exam 4
Ch 19
Term | Definition |
---|---|
After-tax equity reversion (ATER) | The before-tax equity reversion, defined as net selling price minus the remaining mortgage balance, at the time of sale less taxes due on sale |
Before-tax cash flow | Annual net operating income less annual debt service |
Leverage | The use of mortgage debt to help finance a capital investment |
Levered cash flow | The property's net rental income after subtracting any payments due the lender |
Unlevered cash flow | The expected stream of NOIs and the expected net sale proceeds (NSP). This represents the income-producing ability of the property before subtracting the portion of the cash flows that must be paid to the lender to service or retire the debt |