Total Debt Ratio

What is the total debt ratio? Total debt ratio is a metric for calculating the percentage of assets financed by debt. Real estate investors can use this calculation to determine their liabilities and figure out whether their debts …

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Self-Directed IRA

What is a self-directed IRA? A self-directed IRA (SDIRA) is a retirement account that allows you to invest in assets other than stocks and bonds. With an SDIRA, you have total control over your investments, …

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Real Estate Owned

What is real estate owned? Real estate-owned property, or REO for short, is a term used to describe foreclosed property owned by a bank or lending institution. This type of property can be appealing to …

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Discount Rate

What is the discount rate? In the financial realm, the term discount rate refers to one of two things: The first is the interest rate charged when banks take out short-term loans from the Federal …

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What is a dividend? A dividend is a payment of some portion of a company’s earnings to its shareholders. It usually takes the form of cash payment, but it can also be made in additional …

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Earnest Money

What is earnest money? Earnest money is used by homebuyers to show the seller they’re serious about buying their home. It’s put down before closing and is also commonly referred to as a “good faith …

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What is DTI? DTI stands for debt-to-income and is a term used to describe the percentage of your monthly income before taxes that goes toward paying any debts. DTI is used in determining credit scores …

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What is EBITDA? Earnings before interest, taxes, depreciation, and amortization (EBITDA, for short) is a metric that measures financial performance. Companies might find it a useful alternative to calculating net income. That’s because it figures …

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