As we continue to define finance terms here at MomVesting, we now come to the term "Land Contract." This term refers to a real estate contract that allows a buyer to purchase directly from the seller rather than through a bank. Sound familiar? Yes, land contract is similar to a rent-to-own agreement...but it is also very different. Let's take a look at everything that goes into the land contract.

What is a Land Contract?

When you're looking for a home, there are standard real estate listings like single family homes and condos. Then there are your non-standard listings. The ones that can seem like a mega-deal...or a killer trap. One such non-standard listing is a home on leased land, and this type of home purchase can come with some perks and some dangers. Let's take a look at this type of real estate investment a little more closely.

What is a Leased Land Home?

As we continue our Investment Definitions series, we come to a term that may be thrown about quite casually. But when you're first beginning to learn about investments, even one of the most-used terms can trip you up. For that reason, we'll cover the Rate of Return in detail.

What is the Rate of Return?

As we delve deeper into investing terms, we come across the book value per share. This ratio is listed on stock ratio sheets, and it is an important term to know. However, the book value per share is not one of the most integral ratios for investors to consider. Instead, it is often used within a company to determine the health and safety of the company, as determined on a per share basis. Even so, let’s take a look at this ratio definition.

What is Book Value per Share?

As we continue on our stock market definitions path, we come to the price-to-book ratio. Also known by the terms the price/book ratio, the price/equity ratio and the P/B ratio, this stock ratio tells you if a stock is a good deal or a company is in trouble. Want to know more? Well, let’s take a gander.

Definition, Please

When I think about wraparound anything, the first thing that comes to mind is a wraparound porch. My grandmother had one, and it was a thrill as a child to chase my younger cousins all the way around the house to end up right where we started. Ah, memories…but I digress. What we’re talking about today is wraparound financing, not wraparound porches. But I promise, the porch will come in handy as an analogy. Got you hooked? Well, let’s take a look!

Wraparound Financing at its Finest

One of the more important stock terms to read up on is the debt-to-equity ratio. This ratio can tell you at a quick glance the general financial practices of the company, and it is one of the ratios used most often in stock analysis. For that reason, the debt-to-equity ratio is pretty darned important, and we should spend a little time going over the details.

What Exactly is the Debt-to-Equity Ratio?

If your home is financially under water or you're having trouble making payments, it may be tempting to call it quits and head for the hills. But this may not be your best option; leaving your home high and dry for the bank to repossess can tank your credit score. If you had any other option by which you could stay in your home, would you take it? Well, let's look at the details behind two government programs that could save your &#% (that spells house, people!).

HARP: Home Affordable Refinance Program

The popularity of rent-to-own homes has been increasing ever since the housing market crashed. With so many people down on their luck and so many houses available for sale, it can make sense for both parties to set up a rent-to-own agreement. Why? And how does this real estate transaction work? Well, let's take a look.

The Basics

When we looked at return on invested capital a few weeks ago, we briefly touched on the weighted average cost of capital. While the brief definition helped us to define ROIC, it wasn't nearly as in-depth of a definition as this term deserves. So let's take a ride through the ins and outs of weighted average cost of capital (WACC).

WACC: The Basics

First, before we go too far, let's quickly redefine capital: capital is anything of cash value that the company owns, including cash and goods that can be sold for cash. Okay, now that that is out of the way, let's look at WACC.