Where cozy means tiny and charming means needs work.
A quick property valuation metric calculated by dividing sale price by annual gross rental income, used to compare investment properties. It's the back-of-napkin math real estate investors use before getting serious with cap rates and cash flow analysis.
A legal entity holding title to real property with beneficiaries maintaining actual control and benefits of ownership, often used for privacy and estate planning. It's property ownership's invisibility cloak, keeping your name off public records.
The theoretical rental income from a vacant unit that's factored into pro forma projections but not actually being collected. It's the imaginary money that makes cap rates look better on paper than they are in reality.
Someone who attends multiple open houses with no intention of buying, just enjoying free snacks and architectural tourism. They're often retired, bored, or working for a competing agent on reconnaissance.
Government-mandated caps on rent increases, beloved by tenants and blamed by landlords for everything from peeling paint to climate change. Economics' most passionate debate in apartment form.
A loan that pays elderly homeowners monthly while they live in their home, essentially converting equity to cash until they die or move. Your house paying you rent, with a hefty price tag.
The extra compensation an agent receives when representing both buyer and seller, also called double-ending. Twice the work or twice the conflict of interest, depending on who you ask.
A metric that pretends all square feet are created equal, whether they're in a penthouse or a basement. It's the real estate version of judging a book by counting the pages without reading any of them.
A thick, deep-pile carpet style wildly popular in the 1960s and '70s, characterized by long fibers that feel luxurious underfoot but trap everything from crumbs to small pets. These plush floor coverings defined an era of interior design before people realized how impossible they are to clean. Austin Powers would approve.
A spreadsheet listing all tenants in a rental property along with their lease terms, payment history, and unit details—basically the property's financial DNA. It's the first thing savvy investors scrutinize when evaluating a deal.
An agreement giving someone the right, but not obligation, to purchase property at a set price within a specified timeframe. It's essentially renting the opportunity to decide later, popular with investors who want to control property without owning it yet.
The percentage of rentable space sitting empty and generating zero income, serving as a referendum on your property's appeal and your pricing strategy. Low is good; high means you're bleeding money.
A seller-financed agreement where the buyer makes payments directly to the seller but doesn't receive the deed until paid in full. It's layaway for houses, with all the same risks.
A publicly-traded company owning income-producing real estate, basically real estate democratized for stock market players.
Breaking up a piece of real estate (or a company) into smaller parcels for resale—the real estate equivalent of carving up a turkey. Usually done to maximize profit rather than actual value.
A transaction where you simultaneously buy and sell properties, often used in wholesaling to hide profit margins from the actual buyer.
Breaking down property components into depreciable categories with different useful lives to accelerate tax deductions—basically legal tax magic for real estate investors.
Money withheld at closing to ensure the seller completes promised repairs or obligations—basically your insurance policy against seller disappearance.
Covenants, Conditions & Restrictions—the rulebook that HOAs use to control your life in writing.
A legal claim against a property by contractors or suppliers who weren't paid for work or materials. It's revenge served cold by your deadbeat seller's unpaid roofer.
When city planners wave their magic zoning wands and declare that your neighbor's residential lot can suddenly become a mini-mall, or vice versa. It's the bureaucratic process of changing what you're legally allowed to do with a piece of land, often involving endless public meetings where everyone argues about traffic and property values. Democracy in action, one variance hearing at a time.
Institute of Real Estate Management—professional organization for property managers that awards the CPM (Certified Property Manager) designation. The Ivy League of people who deal with broken toilets and angry tenants.
A preliminary written agreement outlining proposed transaction terms before drafting a formal contract, common in commercial real estate. The 'let's agree to maybe agree later' document that lawyers insist isn't legally binding but kinda is.
A tenant's right to use rental property without interference from the landlord or other parties. Not about noise levels—it's about being left alone to live your life between rent payments.