Gross Income Multiplier (GMI) In Real Estate: Definition, Uses, And Calculation A gross income multiplier (GMI) is a crucial tool used in real estate valuation. It provides investors with a rough measure of the value of an investment property. By calculating the GMI, real estate professionals can determine if a property’s asking price is a […]
Key Money In Commercial Real Estate: Definition And Examples Key money in commercial real estate refers to a fee paid to secure a lease on a residential rental property or commercial real estate. It can be considered a synonym for a security deposit or a bribe, depending on the context. In some cases, key money […]
Cash Available For Distribution (CAD): Meaning And Examples Cash available for distribution (CAD) is a crucial metric for evaluating real estate investment trusts (REITs) and their ability to generate cash flow for dividend distributions. In simple terms, CAD refers to the cash-on-hand that a REIT has available to distribute as shareholder dividends. To calculate CAD, […]
What Does Percentage Lease Mean In Real Estate? A percentage lease is a common type of lease agreement in commercial real estate. It involves the tenant paying a base rent along with a percentage of their revenue earned from conducting business on the rental premises. This arrangement offers tenants a lower base rent and the […]
What Is Net Asset Value In Private Real Estate Investing? The net asset value (NAV) is a crucial metric used to evaluate the value of real estate investments, particularly in the realm of private real estate investing. NAV is commonly used in real estate investment trusts (REITs), which are securities that invest in real estate […]
What Is A Sill Plate In Construction? A sill plate is a wooden board that connects the foundation of a house to its frame. Anchor bolts are inserted into the foundation while the concrete is still wet, and then run through the sill plate to secure it to the foundation. The sill plate is a […]
What Is A Value Add Property In Real Estate? A value add property in real estate refers to an investment property that offers the potential for increased cash flow through various methods such as renovations, rebranding, and operational efficiencies. It is a strategy that aims to enhance the value of the asset over time. Value […]
What Is Ravelling in Asphalt Pavements? The deterioration of pavement due to the loss of asphalt and rocks is known as raveling. This can be seen by the presence of rocks and sand on the surface and in gutters of the pavement. Over time, the thickness of the pavement decreases until it has completely eroded […]
What Is Bituminous Coating Waterproofing? Bituminous coating waterproofing is a type of protective coating that provides an impermeable barrier between the substrate and its environment. This water-resistant membrane works by preventing liquid from infiltrating the substrate, allowing it to remain dry and undamaged. It is often used in applications such as roofs, foundations, decks and […]
What Is A Abrasion Weathering? Abrasion is a type of mechanical weathering that occurs when rocks or other materials are worn away due to friction or impact. This can be caused by gravity, moving water, strong winds or the movement of glaciers. When rocks or other materials are moved in this way they may rub […]