Where cozy means tiny and charming means needs work.
A property description system using distances (metes) and directions (bounds) to define boundaries, starting from a point of beginning and returning there. The most complicated way possible to say 'here's where your fence goes.'
Short for 'subject to'—acquiring a property while leaving the existing mortgage in place and making payments on behalf of the seller. It's a creative financing technique that makes attorneys nervous and investors wealthy.
Prepaid interest paid at closing to reduce your mortgage rate, with each point costing 1% of the loan amount. The financial equivalent of paying now to save monthly forever, assuming you stay in the house long enough to break even.
A mortgage provision stating that the lender's title interest terminates once the loan is fully repaid. It's the legal version of 'when you pay me back, I promise to stop owning part of your house.'
A three-party alternative to a mortgage where a trustee holds the property title until the loan is paid. Like a mortgage, but with an extra person who can foreclose faster.
The art of secretly buying adjacent properties to combine into one larger, more valuable parcel—like playing real estate Tetris with someone else's neighborhood. It's why some buyers use LLCs to hide their acquisition strategy.
Someone who purchases property on behalf of another party who can't or won't reveal their identity, ranging from perfectly legal privacy plays to outright mortgage fraud. The real estate equivalent of a burner phone.
Broker Price Opinion—a real estate professional's estimate of a property's value, essentially an appraisal's less expensive, slightly less official cousin who still gets invited to family gatherings.
A valuation metric for multifamily properties calculated by dividing price by number of units, because apparently 'per unit' wasn't jargony enough. It's the real estate equivalent of price per ounce.
The noble art of physically visiting comparable properties to verify that online photos haven't been taken with a fisheye lens from the ceiling. It's due diligence for agents who don't trust Zillow's measurements or the laws of physics.
Debt-to-Income ratio—the calculation that determines if you're financially responsible enough to borrow money, by comparing your debts to your income. It's how lenders mathematically judge your life choices.
The percentage of gross income needed to cover operating expenses and debt service, revealing how close a property teeters to financial disaster. It's the fiscal tightrope number—anything approaching 100% means you're one vacancy from trouble.
The practice of advertising a low base price for a property while gradually revealing additional mandatory fees throughout the transaction. The 'budget airline' approach to real estate pricing.
The illegal practice of mixing client funds (like earnest money) with personal or business operating accounts, a violation that can cost real estate agents their licenses. It's the financial equivalent of inviting the state licensing board to audit your worst decisions.
Insurance protecting the lender when you put down less than 20%, essentially punishing you for not being wealthy enough.
Freelance scouts who hunt for investment properties and tip off investors in exchange for a finder's fee. They're essentially real estate informants who get paid to sniff out deals before they hit the MLS.
The right to obtain full ownership of property while legal title remains with another party, typically during a purchase contract or land contract period. You get to act like the owner before you technically are.
After Repair Value—the estimated market value of a property after renovations are completed, used by flippers and lenders to determine how much to invest. It's the number that makes every renovation look profitable in your spreadsheet, before reality intervenes.
A formal property boundary description sufficient to locate and identify the property with certainty, typically using metes and bounds, lot and block, or government survey systems. 'The house on the corner' doesn't cut it.
The closing day arithmetic splitting property expenses and income between buyer and seller based on ownership periods. It's the financial equivalent of splitting a restaurant check by who ordered what.
The legislative process of changing zoning to allow less intensive land use, such as reducing permitted building height or density. It's how existing homeowners pull up the ladder behind them to prevent the neighborhood from changing.
A FEMA-designated area with specific flood risk levels that determine insurance requirements and costs. It's the government's way of telling you that 'waterfront property' might be more literal than you hoped.
An investment property with carrying costs that exceed the rental income, effectively eating the owner alive month by month. Named because it takes bigger and bigger bites out of your bank account.
Money you surrender to a landlord as insurance against your inevitable humanity—spilling wine, scuffing floors, or daring to hang pictures. In real estate, it's the upfront cash that proves you're serious about a property, which you'll spend the next decade trying to get back. Also serves as a landlord's retirement fund in 47% of rental agreements.