Where cozy means tiny and charming means needs work.
A property owner who rents to tenants and spends their free time calling a plumber or texting the tenant about the rent check that's three days late.
Breaking down property components into depreciable categories with different useful lives to accelerate tax deductionsābasically legal tax magic for real estate investors.
The waiting period lenders require after you acquire a property before you can refinance or apply for a cash-out loanābasically lenders' way of preventing immediate equity extraction.
When buyer and seller fight over who gets the deposit if the deal falls apartāthe worst kind of relationship counseling.
Renting with an option to purchase later, effectively allowing tenants to try homeownership before committing.
A structurally questionable dwelling in an absurdly desirable locationāwhere the ramshackle building itself is nearly worthless, but the land, views, and prestige make it wildly expensive. You're paying millions for the dirt and mythology, not the actual shelter. Also: A structurally questionable shelter in an absolutely spectacular locationāthink Colorado mountains, coastal Maine, or the Swiss Alpsāwhere the dilapidated building itself is practically worthless, but the land, view, and prestige make it absurdly expensive. It's the real estate equivalent of buying a lottery ticket that's also a fire hazard.
Official permission to deviate from zoning requirements, granted by local government when strict application would cause hardship. It's a get-out-of-jail-free card for zoning violations you'd like to commit.
In real estate, the legally mandated buffer zone between your dream home and the streetābecause apparently neighbors don't trust you to build right up to the sidewalk. This zoning requirement ensures adequate spacing for utilities, pedestrian safety, and keeping your McMansion from literally looming over passing joggers. Think of it as the government's way of forcing you to have a front yard whether you want one or not.
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.
Short-term financing for building or renovating property, typically disbursed in stages as construction progresses rather than all at once. It's banking's trust exercise, betting you can actually finish the project before the money runs out.
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.
When a structure, improvement, or object from one property illegally extends onto a neighboring property. It's your neighbor's fence being three feet on your side, discovered precisely when you're trying to sell.
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.
A tax deduction method that spreads a property's cost evenly over its useful life (27.5 years for residential). The IRS's gift to real estate investors, assuming you can wait three decades.
A publicly-traded company owning income-producing real estate, basically real estate democratized for stock market players.
An informal assessment of how much a lender thinks you can borrow based on self-reported informationābasically a lender's educated guess before they actually check anything.
Comparative Market Analysisāa report comparing similar properties to determine a home's market value. It's like Zillow's estimate, except prepared by an actual human who might know what they're doing.
The formal heads-up you're legally required to give before doing something that affects someone else, like ending a lease, quitting a job, or evicting a tenant. It's usually 30, 60, or 90 days, giving just enough time for panic and apartment hunting. Without proper notice, your plans become legally questionable at best.
Institute of Real Estate Managementāprofessional 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 loan secured only by collateral, where the lender cannot pursue the borrower's other assets if the property is insufficient to cover the debt. The 'take the house and leave me alone' mortgage.
A mortgage that meets Fannie Mae and Freddie Mac's size and underwriting requirements, making it eligible for government backing. Essentially, it's a loan that colors inside the lines and gets rewarded with better interest rates.
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.
A personal note from buyers to sellers describing their emotional connection to the property and how they'll cherish it forever. They're increasingly discouraged or banned due to fair housing concerns, but still occasionally work to sway sentimental sellers.
A lease with predetermined rent increases at scheduled intervals, allowing tenants to budget for inevitable pain. The landlord's inflation hedge disguised as transparency.