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The relationship (expressed as a percentage) between the annual net income that is generated by a business and the invested capital (or the appraised value or the gross income) of the business. The rate of return is the percentage yield to the investor based on the property’s production of income.
Dearborn Real Estate Education
This "Word of the day" is excerpted from The Language of Real Estate, 6th Edition by John Reilly (published by Dearborn Real Estate Education, 2006 copyright). To purchase the complete book, with over 2800 key terms and definitions, or to browse through Dearborn's hundreds of other professional real estate titles, including Real Estate Technology Guide by Klein, Barnett, Reilly, click here.