by Ethan Atkinson | Jan 21, 2026 | A-E, PropertyPedia, Real Estate
In real estate transactions, cash out refers to a seller’s decision to receive the full amount of their equity in a property as cash at closing rather than retaining any continuing financial interest in the property. Instead of carrying back financing or holding an...
by Ethan Atkinson | Jan 21, 2026 | A-E, PropertyPedia, Real Estate
In real estate investing, cash flow refers to the actual amount of money an investor receives from a property after all operating expenses and debt service have been deducted from the gross income. Operating expenses may include items such as maintenance, property...
by Ethan Atkinson | Jan 21, 2026 | A-E, PropertyPedia, Real Estate
In real estate valuation, the capitalization rate, or cap rate, is the percentage used to convert a property’s net operating income into an estimate of its market value through the process of capitalization. It represents the rate of return an average investor would...
by Ethan Atkinson | Jan 21, 2026 | A-E, PropertyPedia, Real Estate
In real estate valuation, capitalization is a method used to estimate the present value of an income-producing property by converting its anticipated net income into an indication of value. This is done by dividing the property’s annual net operating income by a...
by Ethan Atkinson | Jan 21, 2026 | A-E, PropertyPedia, Real Estate
In real estate and tax contexts, capital gains refer to the profit realized from the sale or exchange of a capital asset, such as investment property or land, when the selling price exceeds the asset’s adjusted cost basis. The gain is generally calculated as the...
by Ethan Atkinson | Jan 21, 2026 | A-E, PropertyPedia, Real Estate
In real estate and tax law, a capital asset generally refers to property of a permanent or long-term nature that is used in the production of income or held for investment, such as land, buildings, and certain types of equipment. These assets are not primarily held...