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Real Estate Dictionary and Encyclopedia

This Real Estate Dictionary and Encyclopedia goes well beyond a simple and short explanation of the terms listed.

For every term we provide actually an article, which discusses its meaning and relevance to real estate investing and, wherever applicable, its relevance to investing for double-digit profits. This dictionary/encyclopedia is also intented to be very comprehensive covering relevant terms from all theoretical and analytical aspects associated with real estate investment and development, such as economics, finance, law, management, valuation, planning, etc. Please see the articles below.



Absorption Rate
Absorption Schedule
Accrued Depreciation
Adjustable Rate Motgages
Adjusted Rate of Return
After Tax Cash Flow
After Tax IRR
Airport Cities
All Equity Rate of Return
Annual Return Calculation
Annualizing Capital Gains
Annualizing Monthly Returns
Apartment Cap Rates
Apartment Demand
Apartment Investments
Apartment Market Analysis
Apartment Property Targeting
Apartment Property Value
Appraised Value
Appreciation Potential
Appreciation Rate
Appreciation Return
Asset Manager
Balloon Mortgage
Bargain Properties
Before Tax Cash Flow
Blanket Mortgage
BMV Properties
Books on Retail Property
Break Even Interest Rate
Break Even Leverage
Breakeven Ratio
Bridge Loan
Buy-to-Let Investments
Buying Foreclosure Homes
Cap Rate Calculation
Cap Rate Cycle
Cap Rate Data
Cap Rate Forecasts
Cap Rate Formula
Cap Rate Spread
Capital Appreciation
Capital Gains Annualizing
Capitalization Rate (Cap Rate)
Capitalization Rate Influences
Capitalization Rate Readings
Capture Rate
Cash-on-Cash Return
Cash-Out Refinance
Chicago House Prices
Closed-Ended Funds
Commercial Mortgage Finance
Commercial Property or Commercial Real Estate
Commercial Real Estate Analysis
Commercial Real Estate Data Sources
Commercial Real Estate Investment
Commercial Real Estate Valuation
Comparable Sales Approach

Construction Lag The time that it takes to perceive, plan, and construct a project. This time can range from 18 months to several years, depending on the size and nature of the project.

Correlation A statistical measure indicating the extent to which movements in one variable are related to movements in another variable.

Controlling Land
Cost Basis of a Property
Cyclical Property Investing
Deductible Real Estate Taxes in the US
Debt Coverage Ratio (DCR)
Deed of Trust
Deferred Maintenance
Demand Concepts
Demand for Office Space
Demand for Real Estate
Determinants of House Prices

Development-Driven Value Increases Property-value gains triggered by major urban and transportation development projects, or developments specific to the location of a property, which improve its attractiveness and income-earning potential.

Development Patterns
Discount Rate
Discounted Cash Flow (DCF) Model
Distressed Property Investments
Econometric Equations
Effective Gross Income

Encumbrances Encumbrances include claims of use (not ownership) or monetary claims that may burden a property, such as right of way, maintenance agreements, homeowner association assessments, and utility easements.

End Loan
Equated Yield
Equity Buildup
Equity Capitalization Rate
Equity Dividend Rate

Equity Investment The amount of investor’s own money used to finance investments in real estate (purchase and/or development).

Equity Kicker
Equivalent Yield
Estimated Rental Value
Exit Cap Rate

FAR Abbreviation for the ratio of buildable floor area over land area (floor/area ratio).

Financial Risk in Property Investing
Fixed-for-Floating Interest Rate Swap
Forecasting House Prices
Foreclosure Investing
Foreclosure Process
French Economy Forecast
Future Property Value
Geometric Mean Return
Germany Economy Forecast
Going-in Capitalization Rate
Gross Absorption
Gross Income Multiplier
Gross Rental Income
Gross Rent Multiplier
Hedging Real Estate Risk
Hedonic Models
High Profit Investing
Highest and Best Use
Historical Cap Rates
Holding Period Return
Home Price Data and Forecasts
Home Prices
Home Purchase
Hospitality Industry Megatrends
House Price Drivers
House Price Forecasts
House Price Increases: Drivers
House Property Value Appreciation
House Value Calculation
Housing Demand Analysis
Housing Demand and Household Growth
Housing Market Analysis
Hurdle Rate
Hybrid REITs
I-Property
Income Capitalization Approach
India Economy Forecast

Internal Rate of Return (IRR)The periodic (annual, quarterly, etc.) rate of return of an investment. This is calculated as the discount rate that equalizes the purchase price with the present value of all cash flows expected to be received over a given holding period, including the resale price at the end of the holding period.

International Property Investing
International Property Investing: Advantages
International Real Estate Investment in the US
Investing at the Pre-Construction Stage
Investing in Apartments
Investing in Distressed Property
Investing in Foreign Property
Investing in For Sale by Owner (FSBO)
Investing in Land
Investing in Office
Investment Holding Period
Investment Property
Investment Property Valuation
Investment Property Loans
Investment Value Calculation
IRR Calculation
Junior Mortgage
Land Valuation
Leased Fee Estate
Leveraged Return or Leveraged IRR

Liens The term “lien” refers to any charge or encumbrance against a property that secures the payment of a debt. For example liens may include past due property taxes, judgments, and other mortgage loans that may burden a property.

Loan to Value Ratio
Location Analysis and Selection for High Investment Returns
Location Targeting
Los Angeles House Prices: Data Sources
Los Angeles Housing Market

Market-Driven Value Increases Value increases triggered by increases in demand because of economic growth in the broader market area of a property.

Maintenance Expenses
Market Capitalization Rates
Market Rents
Market Value
Maximum Loan Amount
Megatrends in Real Estate
Mezzanine Financing

Migration Relocation across jurisdictional boundaries, the definition of which varies, depending on the geographic scope and context of the analysis. Within the context of this book, the more appropriate boundaries for examining migration patterns are the metropolitan area boundaries.

Mismanaged Properties
Modified IRR or Modified Internal Rate of Return
Monopoly Properties
Monthly Mortgage Payment
Mortgage Acceleration Clause
Mortgage Banking
Mortgage Constant
Mortgage Escalation Clause
Mortgage Finance and Property Investing
Mortgage Financing and Real Estate Investment
Mortgage Insurance
Mortgage Lending Value
Mortgage Loans: Types
Mortgage Loan Amortization
Mortgage Loan Glossary
Mortgage Loan Restructuring
Mortgage Refinancing Advantages
Mortgage Refinancing Costs
Multifamily Housing
Multipurpose Shopping
Natural Vacancy Rate

NCREIF National Council of Real Estate Investment Fiduciaries.

Negative Leverage
Net Absorption
Net Income Multiplier
Net Internal Area
Net Leases

Net Migration The difference between immigration and outmigration.

Net Operating Income
Net Present Value
New York House Prices
No-Money-Down Property Financing Techniques
NOI Calculation
Occupancy Rate
Office Cap Rates or Capitalization Rates
Office Investment Strategy
Office Market Analysis
Office Market Cycle
Office Property Value
Office Space Demand Drivers
Office Space Demand Analysis
Office Vacancy Rate
Operating Budget
Operating Expense Ratio

Outbidding The phenomenon during which one user is involuntarily displaced by another user who is willing and can afford to pay a higher price.

Overall Capitalization Rate
Payback Period
Positive Cash Flow
Positive Leverage

Price Elasticity of Demand The sensitivity of quantity demanded to changes in prices. It is measured as the ratio of the percentage change in quantity demanded over the percentage change in price. If the absolute value of this ratio is less than one, then demand is characterized as price inelastic. Investors looking for markets that will allow for greater price increases in response to increases in demand should be looking for areas and property types with price inelastic demand.

Price Elasticity of Supply The sensitivity of quantity supplied to changes in prices. It is measured as the ratio of the percentage change in quantity supplied over the percentage change in price. If the absolute value of this ratio is less than one, then supply is characterized as price inelastic. Investors looking for markets that will allow for greater price increases in response to increases in demand should be looking for areas and property types with price inelastic supply.

Primary Trade Area The area from which a retail center or cluster draws primarily its customers.

Private Urban Renewal Inner-city neighborhood revitalization primarily originated and carried out by private population and business groups.

Profitability Index
Project Absorption Formula
Property Acquisition Price
Property Contract Price
Property Demand
Property Demand Segmentation
Property Derivatives
Property Income
Property Investment Analysis
Property Investment Benefits
Property Investment Evaluation
Property Investment Feasibility
Property Investment Options
Property Investment Portfolio
Property Investment Profitability
Property Investment Selection
Property Investment Strategy
Property Investment Value
Property Management Expenses
Property Management Fees
Property Portfolio Analysis
Property Portfolio Diversification
Property Portfolio Management
Property Portfolio Strategies
Property Purchase Option
Property Rents
Property Targeting
Property Valuation Guidelines
Property Value
Property Value Formula
Property Value Increases:Drivers
Property Values and Market Recovery
Purchase Money Mortgage

Public Urban Renewal Inner-city neighborhood revitalization primarily originated and encouraged by the local government.

Readings on Home Prices
Real Estate Construction
Real Estate Cycle
Real Estate Demand
Real Estate Demand Concepts
Real Estate Demand Segmentation
Real Estate Economics
Real Estate Investment Characteristics
Real Estate Investment Process
Real Estate Market Analysis
Real Estate Market Data
Real Estate Math
Real Estate Owned (REO)
Real Estate Return Measures
Real Estate Risk
Real Estate Strategy
Recapture Premium
Reducing Real Estate Investment Risk

Refinancing Replacement of existing secured loan through another loan using as collateral the property through which the original loan is secured. Refinancing is typically pursued in order to secure a loan with better terms (lower interest rate, shorter or longer term, etc.) or to switch from an adjustable rate mortgage to a fixed-rate mortgage.

Rent Concessions
Rent Escalation Clause
Rental Market Dynamics
Required Rate of Return
Resale Price
Retail Development
Retail Property Demand Drivers
Retail Vacancy Rate
Return on Equity
Risk-Adjusted Discount Rate
Risk-Adjusted Return
ROR or Return on Total Capital
Second Mortgage Definition
Second Mortgage Financing Use in Property Investing
Secondary Mortgage Financing
Shared Appreciation Mortgage
Shopping Center Location
Shopping Center Data
Shopping Centers
Short Sale
Significant Profit Potential
Sinking Fund Explained
Stabilized NOI
Statutory Closing Costs
Structural Vacancy Rate
Suburban Office Market
Supersonic Travel
Tax Lien Investments
Terminal Capitalization Rate
Time on the Market
Time-Weighted Measures of Property Performance

Title Insurance Insurance policy issued by a title insurance company that protects the buyer against liens and encumbrances not discovered in the title search. Its cost is typically based on the value of the property under consideration.

Total Return Swap Based on the IPD Property Index
Triple Net Leases
Underperforming Properties
Unleveraged Return or Unleveraged IRR
Urban Growth
Vacancy Rate and Rent Dynamics
Value of Income Property
Value of Property with Debt
Value of Property with Land
Value of Property Portfolios
Warehouse Property Demand
Warehouse Property Investments
Where to Invest in Commercial Property
Where to Invest in USA Property
Wraparound Mortgages
Yield Capitalization


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FORMULAS FOR REAL ESTATE SUCCESS!
Download all these formulas Now!
Internal Rate of Return(IRR)
The 3 Formulas for Modified IRR (MIRR)/Financial Management Rate of Return (FMRR)
Potential Gross Income Multiplier (PGIM)
Potential Gross Income
Effective Gross Income Multiplier
Effective Gross Income
Net Income Multiplier
Net Operating Income
Overall Capitalization Rate/Income Return
Capitalization Factor
Band-of-Investment Formula for Estimating a Market/Required Capitalization Rate
Theoretical-Approach Formula for Estimating a Market/Required Capitalization Rate
Appreciation Return
Total Return
Return on Total Capital (ROR)
Return on Equity (ROE)/Cash-on-Cash Return/Equity Dividend Rate
Before Tax Equity Cash Flow (BTECF)
Equity Investment
Loan Amount
Debt Service
Mortgage Constant
Payback Period
Breakeven Occupancy
After Tax Cash Flow (ATCF)
Taxable Income
One-Period IRR
Income Tax Payment in Association with Income Producing Property
Capital Gains
Formula for Cash Flow for Last Period of Analysis
Future Resale Price
Annual Rental Income of Occupied Multi-Tenant Property
Multi-Period Lease Rate Growth Formula with Intertemporally Variable CPI Forecast
Multi-period Lease Rate Growth Formula with Constant CPI Forecast
Present Value (PV)
Net Present Value (NPV)
Profitability Index
And more …….



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