Where cozy means tiny and charming means needs work.
A property advertised for sale or rent, typically appearing on real estate websites and the Multiple Listing Service (MLS). The digital equivalent of a 'for sale' sign, but with better analytics.
A shared database that real estate agents use to list and access properties for sale in their area. Think of it as the social network where agents gossip about every house on the market.
A mezzanine financing structure where the lender receives a percentage of property profits in addition to interest payments, used in high-risk development projects. It's designed for situations where traditional debt won't cut it and investors need a seat at the casino.
The time period a loan must be held before it can be sold or refinanced—basically the financial equivalent of letting wine age.
Physical real estate or a tangible asset; what real estate agents spend 40% of their time showing you while you check your phone. The business of convincing people that paying $500k for a shoebox is 'an investment.'
The time required to fill vacant units in a newly constructed or recently acquired property with tenants. It's a landlord's test of patience measured in months and spreadsheets.
A loan where the lender's only recourse upon default is to seize the collateral (the property); they cannot pursue the borrower's other assets. Basically, the bank gets the house or nothing—making borrowers sleep better and lenders stress more.
A charming relic of industrial-era slum housing, where dozens of families were packed into a structure with approximately the square footage of a shoebox and the ventilation of a tomb. Modern usage: any crumbling, multi-unit rental building where the landlord spends exactly $0 on maintenance and somehow still charges premium rent.
A formal proposal to purchase a property at a specific price with certain conditions. Rejected offers are the real estate equivalent of getting ghosted, but with more legalese.
Recently sold properties similar to the subject property in location, size, and condition, used to estimate fair market value. Appraisers cherry-pick comps like they're selecting the best fruit at the farmer's market.
A provision allowing a borrower to terminate a mortgage by substituting government securities with the same cash flow as the remaining loan payments. It's essentially swapping your mortgage debt for Treasury bonds.
A written promise by a borrower to repay a loan at specified terms, serving as evidence of the debt. It's basically a formal IOU that a lawyer drafted.
A subordinated loan that sits between first mortgage debt and equity in the capital structure, typically carrying higher interest rates and equity-like features. It's the compromise between debt and equity when a developer needs more money but can't get traditional financing.
A loan structure where borrowers pay only interest for a specified period before principal repayment begins. It's great for cash flow in the short term until the balloon payment hits and reality sets in.
A deed where the grantor guarantees they own the property and have the right to sell it, with warranties against prior claims. The safest deed type for buyers because it comes with legal backing.
A legal document proving ownership of a property and detailing the owner's rights and responsibilities. Essentially a property's birth certificate, complete with all the drama of custody disputes.
A property ownership structure where multiple parties own fractional interests without survivorship rights, and each owner's share can be sold or mortgaged independently. It's perfect for groups who want to share property ownership but maintain complete autonomy.
A property purchased below market value where investors improve it to increase returns. A 'fixer-upper' with a business plan and investor-speak.
A transaction where the seller of a property immediately becomes the tenant, leasing it back from the new owner. Selling your property but refusing to really leave.
A lease with predetermined rent increases at specific intervals rather than negotiated annually. Your landlord's way of automating inflation-based rent hikes.
A structurally questionable dwelling in an absurdly desirable location—where 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.
Buying a property, renovating it, and quickly reselling for profit. A high-risk strategy that only works in appreciating markets and when unexpected costs don't destroy margins.
A creditor agreeing to accept lower priority for repayment if the property is sold or foreclosed. Basically saying 'you can collect first, I'll wait in line.'
The entity (typically a title company or real estate firm) responsible for holding the earnest money deposit in a trust account until closing. The referee who decides whose money it is if the deal falls apart.