DEED OF TRUST

In the US, the deed of trust or mortgage (depending on the state in which the mortgage loan takes place) is the instrument that makes the property security for the loan given to the borrower.

The promissory note is the agreement document in which the borrower undertakes a contractual obligation to repay the principal of the loan and interest calculated at the specific interest rate stipulated in the note.

The mortgagee, in the case of a mortgage loan, is actually the party that takes a mortgage or deed of trust as a security of a loan, that is, the lender.

The mortgagor is the party that gives a mortgage or deed of trust as security for a loan, that is, the borrower.

Mortgage loans are typically necessary for carrying a real estate transaction, due to the large capital requirements for financing the full purchase price of a property. Furthermore, when there is positive leverage, it is to the investor’s advantage to use a mortgage loan to finance a property acquisition, because it enhances the investor’s return on equity.

Find hundreds of interesting real estate investment articles in our unique Real Estate Encyclopedia

Search Our Over 700-Page Website!

Custom Search

SMART PROPERTY INVESTING PACK
EBOOKS AND SPREADSHEETS

Download all these formulas Now!
Internal Rate of Return(IRR)
The 3 Formulas for Modified IRR (MIRR)/Financial Management Rate of Return (FMRR)
Potential Gross Income Multiplier (PGIM)
Potential Gross Income
Effective Gross Income Multiplier
Effective Gross Income
Net Income Multiplier
Net Operating Income
Overall Capitalization Rate/Income Return
Capitalization Factor
Band-of-Investment Formula for Estimating a Market/Required Capitalization Rate
Theoretical-Approach Formula for Estimating a Market/Required Capitalization Rate
Appreciation Return
Total Return
Return on Total Capital (ROR)
Return on Equity (ROE)/Cash-on-Cash Return/Equity Dividend Rate
Before Tax Equity Cash Flow (BTECF)
Equity Investment
Loan Amount
Debt Service
Mortgage Constant
Payback Period
Breakeven Occupancy
After Tax Cash Flow (ATCF)
Taxable Income
One-Period IRR
Income Tax Payment in Association with Income Producing Property
Capital Gains
Formula for Cash Flow for Last Period of Analysis
Future Resale Price
Annual Rental Income of Occupied Multi-Tenant Property
Multi-Period Lease Rate Growth Formula with Intertemporally Variable CPI Forecast
Multi-period Lease Rate Growth Formula with Constant CPI Forecast
Present Value (PV)
Net Present Value (NPV)
Profitability Index
And more …….

Search Our Over 700-Page Website!

Custom Search

SBI!