Category: C

CAPITAL IMPROVEMENTS RETOTD Episode 00208

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CAPITAL IMPROVEMENTS Expenditures that arrest deterioration of property or add new improvements and appreciably prolong its life. A structural addition or betterment  to real property that increases its useful life or productivity or extends the life of a building or…

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CAPITAL EXPENDITURES RETOTD Episode 00180

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CAPITAL EXPENDITURES Property improvements that cannot be expensed as a current operating expense for tax purposes. Examples include a new roof, tenant improvements, or a parking lot—such items are added to the basis of the property and then can be depreciated over…

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CAPITALIZATION RATE RETOTD Episode 00117

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CAPITALIZATION RATE A percentage that relates the value of an income-producing property to its future income, expressed as net operating income divided by purchase price. Also referred to as cap rate. A rate of return used to estimate a property’s…

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COMPARABLES RETOTD Episode 00087

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COMPARABLES An abbreviated term used by appraisers to describe properties which are similar in size, condition, location and amenities to a subject property whose value is being determined. The Uniform Standards of Professional Appraisal Practice (USPAP) establish clear guidelines for determining…

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COMMON AREAS RETOTD Episode 00086

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COMMON AREAS Any areas, such as entryways, foyers, pools, recreational facilities or the like, which are shared by the tenets or owners of property nearby. Commonly found in condominium, PUD or office spaces. All portions of a building, land, and…

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CASH-OUT REFINANCE RETOTD Episode 00085

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CASH-OUT REFINANCE Refinancing a mortgage at a higher amount than the current balance in order to transform a portion of the equity into cash. When a borrower refinances his mortgage at a higher amount than the current loan balance with…

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