Real Estate Development Glossary
Plain-language definitions of real estate development terms — from land entitlement and permitting to underwriting and certificate of occupancy.
Plain-language definitions of real estate development terms — from land entitlement and permitting to underwriting and certificate of occupancy.
The estimated value of a property after all renovations and repairs have been completed.
The purchase of a real estate property, including all due diligence and negotiations required to complete the purchase.
Buy, Rehab, Rent, Refinance, Repeat - a real estate investment strategy for building a rental portfolio with recycled capital.
The ratio of a property's annual net income to its purchase price. Used to estimate potential return on investment.
The net amount of cash moving in and out of an investment property. Positive cash flow means more money coming in than going out.
Recently sold properties similar in size, location, and condition used to determine the market value of a property.
The investigation and analysis of a property before purchase, including inspections, title searches, and financial review.
The difference between the market value of a property and the amount owed on any mortgages or liens against it.
A real estate investment strategy where an investor purchases an undervalued property, renovates it, and sells it for a profit.
A short-term loan from private lenders used for real estate investments, typically with higher interest rates and asset-based approval.
A ratio comparing the loan amount to the appraised value of the property, expressed as a percentage.
Using borrowed money (debt) to purchase an investment property to increase potential returns on the investment.
The income generated by a rental property after all operating expenses are deducted, but before financing costs and taxes.
An increase in the value of a real estate property over time due to market conditions and improvements.
The profit generated from an investment expressed as a percentage of the total amount invested.
The process of renovating or repairing a property to increase its value and/or make it suitable for occupancy.
A detailed document outlining all the renovation work to be completed on a property, including materials and costs.
A real estate investment structure where multiple investors pool their capital to purchase and manage larger properties.
The person or entity that leases and occupies a rental property from the owner (landlord).
A strategy where an investor contracts a property and assigns that contract to another buyer for a fee without taking ownership.
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