Iaao course 102 exam - Study guides, Class notes & Summaries

Components of the capitalization process are ________, net operating income, and capitalization rate. - ANSWER-Value Components of the capitalization process are value, ________, and capitalization rate. - ANSWER-Net Operating Income Components of the capitalization process are value, net operating income, and ________. - ANSWERCapitalization Rate Value is created by the expectation of benefits to be derives in the future. - ANSWER-Anticipation This is the underlying principle which provid...

The Economic Principle of Anticipation states that value is created by the expectation of benefits to be derived in the future. Chattel A mortgage on personal property. Balloon payment A payment on the balance due of a note at the end of the loan term that is in excess of the regular payment amounts. Usually found in a partially amoritized mortgage.