by Ted Farry | Nov 4, 2018 | 1031, Investing With Conatus 101, single family rental property
Compound Annual Growth Rate (CAGR) The compound annual growth rate (CAGR) is a way to measure growth over multiple time periods. It can be considered the compounded growth rate from the initial single family rental investment property value to the ending investment...
by Ted Farry | Nov 4, 2018 | 1031, Investing With Conatus 101, single family rental property
Capital Gain or Loss The difference between the selling price of a single family rental investment property or other property (less selling cost) and its Adjusted Basis. Full Glossary If after learning a bit more about Capital Gains you are curious to see how your...
by Ted Farry | Nov 4, 2018 | 1031, Investing With Conatus 101, single family rental property
Broker Price Opinion (BPO) A valuation report used by lenders, investors, and Real Estate Agents to attribute value to a single family rental investment property or other type of property. The valuation analysis can be performed by a licensed appraiser, real estate...
by Ted Farry | Nov 4, 2018 | 1031, Investing With Conatus 101, single family rental property
Boot Non-like-kind property (cash or other property) given by one party to another party in a tax-deferred, like-kind exchange that is taxable. Single family rental investment property can be a great way to eliminate boot in larger transactions because of its lower...
by Ted Farry | Nov 4, 2018 | 1031, Investing With Conatus 101, single family rental property
Basis Point A basis point (BPS) is a unit that is equal to 1/100th of 1%, in other words one basis point is equal to 0.01%, similarly a 1% change is equal to a 100 basis point change. In single family rental investment property the difference between a change in 1...
by Ted Farry | Nov 4, 2018 | 1031, Investing With Conatus 101, single family rental property
Balanced Exchange A balanced exchange of single family rental investment property ensures that the taxpayer defers 100% of their taxes on capital gain and depreciation recapture. General requirements to achieve a balanced exchange: Acquire a replacement property that...
by Ted Farry | Nov 4, 2018 | 1031, Investing With Conatus 101, single family rental property
HPA – Home Price Appreciation HPA is an increase in the value of a single family rental investment property or home over a period of time. The increase can occur for various reasons: increased demand, weakening supply, changes in inflation, changes in interest...
by Ted Farry | Nov 4, 2018 | 1031, Investing With Conatus 101, single family rental property
Appraisal A process of developing an opinion of Market Value for single family rental investment property and other types real estate property. Typically, the person that performs the appraisal is an authorized appraiser and will have a designation from a regulatory...
by Ted Farry | Nov 4, 2018 | 1031, Investing With Conatus 101, single family rental property
1031 EXCHANGE The sale or disposition of real property (relinquished property) and the acquisition of like-kind real estate (replacement property) structured as a tax-deferred, 1031 exchange transaction pursuant to Section 1031 of the Internal Revenue Code and Section...
by Ted Farry | Nov 4, 2018 | Investing With Conatus 101
ACCELERATED DEPRECIATION A depreciation method that allows investors to deduct a greater portion of the cost of depreciable property in the first years after the property is placed in service, rather than spreading the cost evenly over the life of the asset. It is...
