Glossary
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Glossary

  • Capital:

    Capital is any financial asset or the value of an asset.

  • Capitalization (Cap) Rate:

    The capitalization or cap rate measures a property’s yield in a one-year time frame, making it easy to compare one property’s cash flow to another on an equal basis – without taking into account any debt on the asset.

  • Cash-on-Cash Return:

    Cash-on-cash return is one of the most widely used metrics in commercial real estate. As the name implies, this metric is calculated by dividing annual before tax cash-flow by the total cash invested in a project.

  • Common Equity:

    Common Equity means that investors have one-to-one (or equal) participation in each dollar invested and any potential profits or losses.

  • Crowdfunding:

    Funding a product, idea, or venture using small amounts of money raised from the “crowd.”