Where cozy means tiny and charming means needs work.
A court order making borrowers personally liable for the difference between foreclosure sale proceeds and loan balance. The foreclosure wasn't punishment enough—now they want your other assets too.
A valuation method comparing a property to similar recent sales in the area, also known as 'pretending your house is worth what you want it to be.'
Property used for business purposes (office, retail, industrial), where the stakes are higher and the spreadsheets are more complex.
The loan amount as a percentage of property value, essentially how much risk the lender is taking on your deal.
A transit system connecting multiple cities—the OG commuter network before you could work from anywhere. It's how people used to travel between urban centers without spending their entire paycheck on gas.
Partial ownership or time-sharing of an expensive asset (real estate, jets, yachts) without the full price tag or commitment. For people who want the luxury experience but want to hedge their bets. It's basically 'I don't want to fully commit to this $20 million decision.'
A large, final payment due at the end of a loan term that covers the remaining principal balance. Named for its tendency to inflate your anxiety levels right before it's due.
A sale term indicating the property is being sold in its current state with no repairs, warranties, or guarantees from the seller. Translation: buyer beware, because that mysterious smell and creaky foundation are now your problems.
When borrowed money produces a higher return than the interest cost, making you look like a financial genius. It's the Holy Grail of real estate investing: using other people's money to make more money than you're paying them.
A legal provision that protects a portion of a home's value from creditors and property taxes. Because even the government agrees you shouldn't be completely homeless.
Strategies employed by lenders to avoid foreclosure when borrowers can't make payments, including loan modifications, short sales, or forbearance. The bank's damage control department.
Member of the Appraisal Institute—a prestigious professional designation for real estate appraisers. The PhD of property valuation, complete with extensive education and testing requirements.
The tax rate used to calculate property taxes, expressed as dollars per $1,000 of assessed value. Because 'taxes per thousand' sounds friendlier than the actual tax bill.
Net Operating Income—the annual revenue from a property minus operating expenses, before debt service and taxes. The number that actually matters when evaluating investment properties.
Legal rules governing how you can use your property, basically buying land with invisible chains attached.
Specific conditions that must be met for a contract to proceed, the legal equivalent of 'but first...'
Annual net income divided by property cost, the primary metric for evaluating commercial real estate investments.
Annual pre-tax cash return divided by initial cash invested, the true measure of investment profitability in real-world terms.
Either a technical drawing showing how something is built or designed (especially buildings viewed from above), or a set of coordinated actions intended to achieve a goal. Real estate agents live by these; architects obsess over them.
A lender's way of determining if you have too many bills relative to income, basically calculating how much of your paycheck goes to debt obligations.
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.
A binding contract that details the terms of a rental arrangement, basically a detailed way to say 'pay me monthly or get out.'
A metric unit of land area equal to 100 square meters—basically a tiny plot that real estate developers pretend doesn't matter when calculating density.