An assessment of an insurance company’s ability to pay claims. As a result, the Just Market Value for properties valued by the Income approach may not be equal to the sum of the values for Land, Building, and Misc Item. The process of ensuring that the beginning balance plus the sum of all entries on an account statement equals the ending balance. Present Value. The members make the business decisions of an LLC unless the articles of organization provide that the LLC will controlled by a manager, or managers. Discount Broker.
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Improvement of realty property as part of a real estate investment strategy is generally considered to be a sub-specialty of real estate investing called real estate development. Real estate is an asset form with limited liquidity relative to other investments, it is also capital intensive although capital may be gained through mortgage leverage and is highly cash flow dependent. If these factors are not well understood and managed by the investor, real estate becomes a risky investment. Real estate markets in most countries are not as organized or efficient as markets for other, more liquid investment instruments. Individual properties are unique to themselves and not directly interchangeable, which presents a major challenge to an investor seeking to evaluate prices and investment opportunities.
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An accounting method that counts cash inflows or outflows when they are actually expended or received as opposed to accrual basis. Liquidation Value. Bank Reconciliation. Golden Parachute. A term insurance policy with a death benefit that decreases over time. Total monthly income from all sources before taxes and other expenses. If a corporation conducts business in a state other than where it was incorporated, it must register for a certificate of authority to transact business in the other state or possibly lose access to that state’s courts and face fines.
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