|After-tax equity reversion (ATER)
||The before-tax equity reversion, defined as net selling price minus the remaining mortgage balance, at the time of sale less taxes due on sale.
|Before-tax cash flow
||Annual net operating income less annual debt service.
||The use of mortgage debt to help finance a capital investment.
|levered cash flow
||The property’s net rental income after subtracting any payments due the lender.
|unlevered cash flow
||The expected stream of NOIs and the expected net sale proceeds (NSP). This represents the income-producing ability of the property before subtracting the portion of the cash flows that must be paid to the lender to service or retire the debt.
|Before-tax equity reversion
||The net sale proceeds less the outstanding balance on the mortgage loan.