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prime rate definition

Prime Rate Definition

The prime rate determines the rates for mortgages, personal loans, and small business loans. The lenders mostly charge this rate to their most favored borrowers. This rate is used as the base for calculating rates for variable-rate mortgages. In real …

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sandwich lease

Sandwich Lease Definition

A sandwich lease is a lease agreement where a real estate investor leases the property from an owner and then leases the same property to someone else. Sandwich leases are standard in real estate investing, so students must grasp this …

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underwriting

Underwriting Definition

Underwriting is a process in which an underwriter assesses the risks associated with a loan or mortgage. The risk evaluation is done to protect banks, investors, financial institutions, and insurance agencies from any loss. If you’re a real estate student, you …

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modified gross lease

Modified Gross Lease

A modified gross lease is an agreement between a landlord and tenant where the tenant pays for rent and a portion of operating expenses. Because modified lease agreements are common in commercial real estate, this is an important topic for …

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gross lease

Gross Lease Definition

A gross lease is a rental agreement where the tenant pays a single flat fee that covers rent and operating costs. Knowing how gross leases work in real estate is essential to passing the licensure exam. To ensure your success …

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net lease

Net Lease Definition

A net lease is a contractual agreement where the lessee pays the rent in addition to property costs that the owner would usually pay. Real estate students should learn the details of how net lease agreements work before taking the …

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