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Cash flow
The amount of cash a rental property investor receives after deducting operating expenses and loan payments from gross income.
Closing
The final procedure in which documents are signed and recorded, and the property is transferred.
Closing costs
Expenses incidental to the sale of real estate, including loan, title and appraisal fees.
Commission
The negotiable percentage of the sales price of a home that is paid to the agents of the buyer and seller.
Compound interest
The interest paid on the principal balance in a mortgage and on the accrued and unpaid interest of the loan.
Contingency
A condition specified in a purchase contract, such as a satisfactory home inspection.
Credit report
A credit bureau report that shows a loan applicant's history of payments made on previous debts. Several companies issue credit reports, but the three largest are Trans Union Corp., Equifax and Experian (formerly TRW).
