Where cozy means tiny and charming means needs work.
Funds set aside for replacing building components and systems that wear out over time, essential for multifamily and commercial property management. The 'we know the roof will eventually die' savings account.
The potential for future value appreciation or income growth in a property, typically based on improvements, market trends, or repositioning strategies. It's what optimistic investors see when everyone else sees a money pit.
A method of property distribution in estate planning where a deceased heir's share passes to their descendants rather than being redistributed. Latin for 'please don't fight over my stuff when I'm dead.'
Properties available for purchase that aren't publicly listed on the MLS or advertised to the general public. These are deals found through networking, direct marketing, or knowing someone who knows someone—real estate's version of insider trading, but legal.
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 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.'
The percentage of a property's value that's borrowed, calculated by dividing loan amount by appraised value or purchase price. The number that determines whether lenders think you're responsible or reckless.
Property rights of landowners whose property borders large navigable lakes or oceans, governing use of water and shore access. Like riparian rights' fancy coastal cousin who summered in the Hamptons.
A tax levied by state or local government when property ownership changes hands. It's the government's cut of your real estate transaction, because apparently they weren't getting enough already.
A euphemistic phrase suggesting the current owners maintain their property immaculately, or more cynically, that they've over-improved it beyond what the market will bear. Translation: someone really loves their home, possibly too much.
The total acquisition cost of a multifamily property divided by the number of rental units, providing a quick metric for comparing deals. It's how apartment investors reduce complex investments to a single number they can text each other.
A tenant who remains in possession of property after their lease expires without the landlord's permission. The houseguest who won't leave, except they're paying (or supposed to be paying) rent.
A fancy architectural and legal term for "exit" or "way out," used by people who think "door" sounds too pedestrian. It's particularly important in building codes and real estate, where proper egress can mean the difference between passing inspection and violating fire safety regulations. Essentially, it's the escape route that lawyers and architects prefer to call by its Latin-derived name.
A lawsuit to establish clear ownership when a property's title is messier than a reality TV custody battle. It's how you legally tell all the random people with claims on your property to take a hike.
Adjustable-Rate Mortgage—a loan where the interest rate can fluctuate based on market conditions after an initial fixed period. It's the financial equivalent of a mystery box: exciting at first, potentially terrifying later.
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 lucky individual or entity whose name appears on the property deed as the legal owner, meaning they get to pay all the taxes, insurance, and maintenance while everyone else admires their investment. This person has the legal right to possess, use, and transfer the property—along with the accompanying mortgage payments. Being a titleholder is basically having your name on the most expensive piece of paper you'll ever own.
A property built on speculation without a specific buyer in mind, using builder-grade everything in beige or gray. The housing equivalent of business casual—safe, boring, and designed to offend absolutely nobody.
Per Calendar Month—the rental industry's way of stating the bleeding obvious about monthly payments, because apparently 'monthly' wasn't clear enough. Commonly seen in real estate listings alongside other redundant acronyms designed to make basic concepts sound more professional. The 'ATM machine' of property jargon.
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 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.
Industry slang for properties with minor cosmetic issues that scare away typical buyers but are catnip to investors and DIYers. Think ugly carpet and dated wallpaper, not structural disasters—though agents sometimes blur that line.
A detailed table showing how each mortgage payment is split between principal and interest over the loan's lifetime. It's essentially a financial crystal ball revealing that your first payments are basically just interest donations to your lender.
A legal claim against a tenant's personal property for unpaid rent, giving landlords leverage beyond strongly worded emails. The grown-up version of keeping your roommate's stuff hostage.