Useful Real Estate Securities Terms:
- Non Traded Real Estate Investment Trust
- A trust that hold real estate or real estate mortgages which is required to distribute 90% of its taxable income to its shareholders. It is similar to a Wall Street traded REIT except that it is not traded and its value is the Net Asset Value (NAV) of its holding as opposed to the market value of its traded shares.
- Real Estate Fund
- An investment structure, (usually organized as an LLC) that holds real estate, real estate mortgages or claims upon real estate assets. It may have levels of return and risk and may be used for high risk ventures with risk levels allocated.
- LLC or Limited Liability Corporation
- LLC may be structured in many ways and over great flexibility. They usually "pass through" all tax advantages. An LLC is used to limit the liability of the investors to the amount of their investment.
- Pass Through Entity
- Investment structure in which investment benefits flow through to the investors.
- 1031 Exchange
- Section 1031 of the Revenue Code allows sellers of real estate to defer taxation provided they purchase replacement property in a timely manner.The rules are strict and inflexible. Use of Section 1031 requires expert assistance. We strongly recommend subscribers contact us for information.
- Depreciation
- Also called cost recovery allows real estate owners to deduct a percentage of their property value from their income.Depreciation may also refers to the loss of property value over time.
- Appreciation
- The increase in value of property over time.
- Amortization
- The diminution of the principal owed on a mortgage through the partial payment of principal. Usually occurs via the mortgage payment in a self-amortizing loan
- NNN Income
- Real estate income net of expenses, insurance and property taxes.
Posted by S-Net-Blog at 8/6/2011 3:43 PM 
Categories: uncategorized
Tags: REIT NNN Income Retirement Income 1031 exchange Glossary Terms
Categories: uncategorized
Tags: REIT NNN Income Retirement Income 1031 exchange Glossary Terms
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