IRA
What Is an IRA? IRA stands for “Individual Retirement Account.” There are several types of IRAs, but all of them offer some tax advantages to help you fund your retirement years. IRAs can be invested …
Investing 101
Our guide to real estate, investing, strategies, and everything in-between.
Alternative Investment
What is an alternative investment? An alternative investment is an asset or strategy that falls outside the traditional stock, bond and cash markets. These investments can enhance portfolio diversification and risk management and generate additional …
Market Capitalization
What is market capitalization? Have you ever wanted to know the total amount of all the shares of stock a company owns? Market capitalization—or “market cap”—tells you exactly that. It’s one of the best ways …
Price Anchoring Effect
In real estate, the anchoring effect refers to subconsciously using irrelevant information or “anchor points” to make purchasing or investment decisions. In addition, the anchored meaning has to do with cognitive bias that occurs …
Equity Multiple
Equity multiple essentially lets investors know how much money they stand to make on their upfront investment. What is equity multiple? Equity multiple is a commercial real estate term that refers to the total cash …
LTV
What is LTV? As you build your real estate portfolio, you’ll encounter several acronyms that lenders and other investors use. Loan-to-value (LTV) is one of them. It’s a number that determines risk when someone takes …
Closing Costs
What are closing costs? If you’ve purchased a home before, you know that the purchase price is just one of many costs associated with the home-buying process. Some of the most important costs are the …
Capitalization Rate
What is the capitalization rate? Definition: The capitalization rate, also known as cap rate, is a term used to describe the expected rate of return on a real estate investment property. The most significant element to …
Depreciation
What is depreciation? Depreciation is a decrease in an asset’s value caused by wear and tear, age, or changes in the market. There are two primary ways in which depreciation is commonly understood. The first …
Contingency
What is a contingency? When it comes to real estate, a contingency is a clause in the purchase agreement that details actions and/or requirements to be met before the contract can become legally binding. The buyer …