Acquisition refers to the process of obtaining ownership of an asset through various means such as purchase, trade, or gift. It also encompasses the asset that has been acquired.
Assemblage is the process of combining two or more adjoining parcels of land to create a larger, more valuable piece of property. The new, larger tract may have a higher collective value due to its potential for enhanced usability or development.
The Average Rate of Return (ARR) is a metric used to evaluate the profitability of an investment, calculated by dividing the total net earnings by the number of years the investment was held, and then dividing by the initial acquisition cost.
Betterment refers to an improvement made to a property that enhances its value, utility, or physical condition. This term is commonly used in the context of real estate to describe upgrades or modifications that increase the overall quality of the property.
A Blind Pool is an investment fund where the investors do not know the specific assets that will be purchased at the time of their investment. It is typically managed by a syndicator who makes purchasing decisions after collecting the capital.
A Commercial Mortgage Loan is a loan secured by real estate that generates business or rental income, typically used in transactions involving commercial properties like office buildings, shopping centers, or warehouses.
The process of converting rental apartments or other types of multi-unit buildings into individually owned units usually under a condominium structure.
Founded in 1994, the European Real Estate Society (ERES) fosters a structured and permanent network that facilitates collaboration between real estate academics and professionals throughout Europe.
Furniture, Fixtures, and Equipment (FF&E) are vital items that wear out more rapidly than other components in commercial properties like hotels or motels, and typically have a useful life of around 7 years.
The Income Multiplier, also known as Gross Rent Multiplier, is a valuation method that establishes the relationship between a property’s purchase price and its gross rental income. It is commonly used to assess the attractiveness of an income-generating property investment.
Jeopardy in real estate refers to the risk or danger of losing a property, typically due to default on a loan or failing to meet certain contractual obligations, leading to potential foreclosure or other legal actions.
A Joint Venture (JV) is an agreement between two or more parties to pool their resources for the purpose of accomplishing a specific task. This task can be a business activity or a property investment. Each party in the joint venture retains their individual profits, losses, and assets, while jointly sharing control over the project.
A junior mortgage is a type of mortgage that rises behind a prior mortgage in lien priority, which means in case of default, the primary mortgage get paid first before the junior mortgage is addressed.
Market analysis involves studying supply and demand conditions in a specific area for a specific type of property or service. It aids developers in deciding project types and securing financing for proposed developments.
Milking a project, also known as bleeding a project, refers to the extraction of financial resources or benefits from a real estate project without reinvesting or contributing towards its development and sustainability.
NAREIT is the preeminent organization that represents and advocates for real estate investment trusts (REITs) and publicly traded real estate companies in the United States. It plays a crucial role in education, advocacy, and research to promote the growth and understanding of REITs.
The National Real Estate Investors Association (NaREIA) is an organization that works with local investor groups to share resources and exchange information.
Operating income, also known as Net Operating Income (NOI), is a key financial metric used to assess the profitability of a real estate investment or business by calculating earnings before interest and tax deductions.
An option in real estate refers to the right to purchase or lease a property upon specified terms within a specified period.
A pad site is an individual freestanding retail space that typically encompasses ¾ to 1½ acres, often located near larger shopping centers or commercial developments.
Plottage refers to the increase in value realized by combining multiple smaller parcels of land into a single, larger parcel. This process is often employed in real estate to optimize land use and maximize profit.
A pre-foreclosure sale is a transaction in which a third-party buyer purchases a property after the underlying mortgage has been posted for foreclosure but before the property has been repossessed by the lender or liquidated to pay the debt.
A Real Estate Investment Trust (REIT) is a company that owns, operates, or finances income-producing real estate.
Redevelopment involves the demolition of existing improvements and the construction of new improvements on a site. The new improvements often differ from the old ones in various aspects...
A Rent Roll is a detailed list of individual tenants within a property, typically including information such as unit numbers, lease agreements, monthly rents, and lease expiration dates. It serves as a critical document for property management, providing an overview of rental income and tenant occupancy status.
A retail property is a classification designated through zoning ordinances, allowing for various types of businesses such as stores or shopping centers, enhancing the commercial use of an area.
Subdivision refers to the process of dividing a tract of land into smaller lots, typically for the purpose of homebuilding or development. This process often requires recording a subdivision plat in accordance with state and local regulations.
Tenancy In Common (TIC) is a form of real estate ownership by two or more parties, where each holds an undivided interest in the property without rights of survivorship.
Trading Up refers to the process of buying a larger or more expensive property, often done to accommodate growing families, enhance lifestyle, or secure better investment opportunities.
The underimprovement occurs when a property or development exists at a lower investment or utility level than the optimal usage potential of the site.
Upgraders are homeowners who seek to purchase what they believe is a better home, often referred to as 'move-up' buyers. This usually involves acquiring a larger, more conveniently located home, or one with additional amenities. Typically, the new home costs more than the proceeds from the sale of the old home.
Vacant land refers to parcels of land that are not currently being used for any purpose. While it may contain basic utilities and some off-site improvements, it remains unutilized as opposed to developed land.
