Investing Education

Effective gross income represents the actual income a property is expected to generate after accounting for vacancy and credit losses. It is calculated by taking potential gross income and subtracting income that is unlikely

Earnest money is a deposit made by a buyer to demonstrate intent and commitment when entering into a real estate purchase agreement. The funds are typically held in escrow and applied toward the purchase

Down payment assistance refers to programs or incentives designed to help buyers cover part or all of the upfront cash required to purchase a property. These programs are most commonly associated with residential housing

Dividend yield measures the income generated by an investment relative to its price or value. In real estate and real estate funds, dividend yield typically represents the annual cash distributions paid to investors divided

A distressed property is a real estate asset experiencing financial or operational difficulty that may impair value or ownership stability. Distress can arise from foreclosure, default, deferred maintenance, vacancy, or broader market conditions. Why

The debt service coverage ratio measures a property’s ability to cover its debt obligations using operating income. It is calculated by dividing net operating income by total debt service. This ratio is one of

The debt to income ratio compares total debt obligations to income and is commonly used to assess a borrower’s ability to service debt. In real estate, it is most often applied in residential lending

The debt to equity ratio measures how much debt is used to finance a property or investment relative to the amount of equity invested. It is calculated by dividing total debt by total equity

A contingent offer is a purchase offer that depends on one or more conditions being met before the transaction can proceed to closing. Common contingencies include financing approval, property inspections, appraisal results, or the