Real Estate Investment Terms
Adjusted basis- value of property used to determined the amount of gain or loss realized by an owner upon sale of the property; equals acquitition cost plus capital gains, improvements minus depreciation taken
Appreciation- An increase in property value
Boot- cash receive in a tax free exchange
Capital gain- is a profit realized fromt he sale or real estate investments, assets such as stocks , collectibles etc..
Capital loss- occurs when investment or other types of property is sold at a lost
Cash flow – income produced by an investment property after deducting operating expenses and debt.
Debt service- principal and interest on a debt
gross income- income received with out subtracting expenses
Leverage- the use of borrowed funds
Net operating income- gross operating income minus operating expenses
Fillmore Real Estate
Licensed Real Estate Associate Broker