100% CORRECT WELL DETAILED ANSWERS|LATEST
Activity Report - ANSWER used to reconcile the total amounts of principal and interest
due and paid within a specified period of time.
Additional Rent - ANSWER The amount owed by a commercial tenant that represents
the proportionate share of operating costs as defined in the lease. Also called CAM or TMI
After-Tax Cash-on-Cash Return - ANSWER Similar to Cash-On-Cash return but adjusts
for taxes during the first year.
FORMULA: CFAT/Initial Investment
Capital Cost Allowance (CCA) - ANSWER The portion of the capital cost that may be
deducted from income as a claim for depreciation under the Income Tax Act. CCA
acknowledges the loss in value over the life of an asset and the ability to offset income in
relation to the cost of that asset.
CAP RATE - ANSWER NOI / Purchase Price HIGHER IS BAD
Capital Stack - ANSWER Financial Structure of the real estate investment that
evaluates the risk factors, probability of cash flow and overall feasibility of the investment.
2 Types:
Equity (ownership interest)
1
Activity Report - ANSWER used to reconcile the total amounts of principal and interest
due and paid within a specified period of time.
Additional Rent - ANSWER The amount owed by a commercial tenant that represents
the proportionate share of operating costs as defined in the lease. Also called CAM or TMI
After-Tax Cash-on-Cash Return - ANSWER Similar to Cash-On-Cash return but adjusts
for taxes during the first year.
FORMULA: CFAT/Initial Investment
Capital Cost Allowance (CCA) - ANSWER The portion of the capital cost that may be
deducted from income as a claim for depreciation under the Income Tax Act. CCA
acknowledges the loss in value over the life of an asset and the ability to offset income in
relation to the cost of that asset.
CAP RATE - ANSWER NOI / Purchase Price HIGHER IS BAD
Capital Stack - ANSWER Financial Structure of the real estate investment that
evaluates the risk factors, probability of cash flow and overall feasibility of the investment.
2 Types:
Equity (ownership interest)
1
