Glossary of Terms

Capital Reserves 2015-09-16 08:00:00

Capital Reserves

In the context of commercial real estate, capital reserves are funds designated for long term capital investment projects or future capital expenditures.

Capital reserves amounts are typically based on a per unit or per square foot basis and collected or accounted for annually.

For example, a lender may require a multifamily investor to set aside $250 per unit per year in capital reserves to account for any future capital improvements. Also known as Replacement Reserves.

 


Are DST & TIC Investments Right For Me?

Download the Free DST Guidebook


What is a 1031 Exchange? eBook
Download

Download the Realized Ebook - What Is A 1031 Exchange?

1031 Exchange Calculator
Download

Download the Realized 1031 Calculator

Capital Gain Tax Rates by State
View

View the Capital Gains Tax Rates by State

Filter by

Fractional 1031 Investing 1031 Exchange Capital Gains on Real Estate Capital Gains Tax General Real Estate Investing