real estate certificate of deposit(redirected from Real Estate CD)
Real Estate Certificate of Deposit
A certificate of deposit in which the provider uses the proceeds to purchase a piece of real estate. The CD holder is then entitled to receive rental payments and/or capital appreciation on the value of the property in addition to the interest rate to which he/she otherwise receives. A real estate CD therefore carries a lower interest rate than other CDs, but provides the possibility of a higher return.
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real estate certificate of deposit
A certificate of deposit that provides a guaranteed rate of interest as well as the possible rent revenues and capital gains that may be derived from the property that the funds from the certificate are used to acquire. The guaranteed rate of interest is usually lower than the rate paid on regular certificates of deposit. Compare equity kicker.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.