Business, 13.07.2020 20:01, Sevara100

Financing the purchase of an investment in real estate with a mortgage at the time of borrowing at a low rate of interest and investing in assets that earn more than what they cost puts you ahead of the game due to the concept of

Answers: 2

Show answers

Answers

answered: daymakenna3

Leverage.

Explanation:

Financing the purchase of an investment in real estate with a mortgage at the time of borrowing at a low rate of interest and investing in assets that earn more than what they cost puts you ahead of the game due to the concept of leverage.

Generally, one of the several and most effective strategies investors used for investing in the business of real estate is a leverage.

Leverage can be defined as the concept of using borrowed money or capital to buy property that would generally appreciate. When leveraging a property in real estate, investors borrow funds (money) from a mortgage (lender) at a low rate of interest in order to enable them purchase an investment property.

This simply means that, instead of covering the entire purchase price, investors resort to borrowing to finance the purchase of an investment property in real estate. The property eventually appreciates and they're able to earn more than what they invested initially.

For instance, if Noahbrap wishes to buy a property worth $1 million. He could go to a bank and borrow the sum of $650,000 and thus, Noahbrap would have to pay the additional $350,000 from his pocket.

However, if depreciation sets investors would run at a loss when leveraging.

answered: Guest

1 all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

answered: Guest

Move their business to mexico.

Other questions on the subject: Business

Business, 21.06.2019 14:30, jwbri

What are 3 ways through which you might obtain employment experiences

Answers: 1

continue

Business, 22.06.2019 04:10, jennifer9983

Oakmont company has an opportunity to manufacture and sell a new product for a four-year period. the company’s discount rate is 18%. after careful study, oakmont estimated the following costs and revenues for the new product: cost of equipment needed $ 230,000 working capital needed $ 84,000 overhaul of the equipment in year two $ 9,000 salvage value of the equipment in four years $ 12,000 annual revenues and costs: sales revenues $ 400,000 variable expenses $ 195,000 fixed out-of-pocket operating costs $ 85,000 when the project concludes in four years the working capital will be released for investment elsewhere within the company. click here to view exhibit 12b-1 and exhibit 12b-2, to determine the appropriate discount factor(s) using tables.

Answers: 2

continue

Business, 22.06.2019 14:50, QuarkyFermion

Pear co.’s income statement for the year ended december 31, as prepared by pear’s controller, reported income before taxes of $125,000. the auditor questioned the following amounts that had been included in income before taxes: equity in earnings of cinn co. $ 40,000 dividends received from cinn 8,000 adjustments to profits of prior years for arithmetical errors in depreciation (35,000) pear owns 40% of cinn’s common stock, and no acquisition differentials are relevant. pear’s december 31 income statement should report income before taxes of

Answers: 3

continue

Business, 22.06.2019 16:20, valdezavery1373

The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. the production order quantity for this problem is approximately:

Answers: 1

continue

Do you know the correct answer?

Financing the purchase of an investment in real estate with a mortgage at the time of borrowing at a...