Home
/
Learning Hub
/
Real Estate Dictionary

Real Estate Dictionary

How is a Retained Earnings Statement Used in Real Estate?

A Retained Earnings Statement in real estate tracks reinvested profits after distributions, helping firms assess capital for property acquisitions, developments, or debt repayment.

February 22, 2025

Cash Coverage Ratio: Application to Real Estate

In real estate, the Cash Coverage Ratio measures a property's ability to cover debt payments with its cash flow, helping lenders and investors assess financial stability and risk.

February 22, 2025

Fixed Asset Turnover Ratio: Application to Real Estate

In real estate, the Fixed Asset Turnover Ratio measures how efficiently a property or portfolio generates revenue relative to its fixed asset value, helping investors assess asset utilization and financial performance.

February 22, 2025

How Does Accounts Receivable Factoring Apply to Real Estate?

Accounts receivable factoring in real estate allows property managers, landlords, or contractors to sell outstanding invoices at a discount for immediate cash flow, helping cover expenses or fund projects while sacrificing a portion of the receivable as a fee.

February 22, 2025

How Does a Leveraged Buyout Model (LBO) Apply to Real Estate?

A real estate LBO involves acquiring a property using high leverage, increasing its value through operational improvements or repositioning, and exiting via a sale or refinance to generate strong equity returns while managing debt risks.

February 22, 2025

How Does Days Payable Outstanding (DPO) Apply to Real Estate?

In finance and real estate, Days Payable Outstanding (DPO) measures how long firms take to pay vendors for expenses like maintenance, construction, and utilities, impacting cash flow, vendor relationships, and financial strategy.

February 22, 2025

What is Lease Accounting?

Lease accounting in multifamily real estate involves recognizing and reporting lease obligations for both property owners (as lessors) who generate rental income from tenant leases and operators (as lessees) who lease land, buildings, or equipment, impacting financial reporting, compliance, and cash flow management.

February 22, 2025

What is a Depreciation Schedule?

A Depreciation Schedule is a detailed breakdown of how an asset’s value declines over time for tax and accounting purposes. In multifamily real estate, this schedule outlines the expected lifespan of the property and its components, determining the amount of depreciation that can be deducted each year.

February 22, 2025

How Does Days Sales in Inventory (DSI) Apply to Real Estate?

Days Sales in Inventory (DSI), which measures how long a company holds inventory before selling it, has a limited but relevant application in real estate, particularly for homebuilders, developers, and real estate investment firms dealing with unsold properties.

February 22, 2025

What Does FFO Mean in Real Estate?

Funds From Operations (FFO) is a key financial metric for real estate, especially REITs, that adjusts net income by adding back depreciation and subtracting property sale gains to better reflect recurring cash flow and operational performance.

February 22, 2025
Still have a question? Contact us
24×7 help from our support staff
Popular topics
The Most Common Code Violations in Multifamily
What is Digital Real Estate?
What is ILS Marketing in Real Estate?
What is over leveraging in real estate?
What is the difference between market rent and HUD fair market rent?
HelloData hand logo market surveys

Make real-time data your competitive advantage!

Schedule a demo below to see our multifamily analytics platform and APIs in action.

Schedule Demo7-Day Free Trial