i: A component of the T-bar which represents the interest rate.
Imperfect market: A market in which product differentiation exists, there is a lack of important product information, and certain buyers or sellers may influence the market. Commercial real estate is bought and sold in an imperfect market.
Income capitalization: approach A way to determine the market value of an income-producing property by converting its future income stream into a single capital value.
Initial investment: The outlay of cash needed to acquire an investment.
Insurable value: The value of the portions of the property that are physically destructible
Interest rate: The lender's rate of return on borrowed fund.
Interest-only loan: A method of loan amortization in which interest is paid periodically over the term of the loan and the entire original loan amount is paid at maturity.
Internal rate of return (IRR): The percentage rate earned on each dollar that remains in an investment each year. The IRR of an investment is the discount rate at which the sum of the present value of future cash flows equals the initial capital investment.
Investing: Limiting current consumption in favor of future consumption.
Investment value: The value to a specific investor, based on that investor's requirements, tax rate, financing, etc.
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