Different types of real estate properties including residential, commercial, industrial, and land investments.
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Foundation terms you need to know first (60 terms)
Development costs are all the expenses incurred during the process of acquiring land, designing, constructing, and preparing a real estate project for use or sale, from start to finish.
An office building is a commercial property designed for businesses to conduct administrative, professional, or commercial operations, offering spaces for work and meetings.
A retail center is a commercial property designed for various retail businesses, ranging from small strip malls to large shopping centers, providing goods and services to consumers.
An industrial warehouse is a large commercial building used for storing, manufacturing, or distributing goods and materials, serving as a critical link in the supply chain for various industries.
Real assets are physical, tangible investments such as real estate, commodities, and infrastructure, valued for their intrinsic properties and often used as an inflation hedge and portfolio diversifier.
Complex strategies and professional concepts (10 terms)
Build-to-Rent (BTR) refers to residential communities, typically single-family homes or townhouses, that are purpose-built by developers specifically for rental rather than for sale, offering a professionally managed, amenity-rich living experience.
Brownfield redevelopment involves the acquisition, remediation, and revitalization of properties that are contaminated or perceived to be contaminated, often due to past industrial or commercial use. It transforms environmentally challenged sites into productive assets, contributing to urban renewal and sustainable development.
Held for Sale Classification is an accounting designation for non-current assets or disposal groups whose carrying amount will be recovered primarily through a sale transaction rather than through continuing use, requiring specific criteria to be met under GAAP and IFRS.
An STR Pro Forma is a detailed financial projection and analysis tool used to evaluate the potential profitability and performance of a short-term rental property, incorporating dynamic pricing, seasonal occupancy, and higher variable operating expenses.
The Covenant of Seisin is a legal promise in a deed, typically a general warranty deed, by which the grantor assures the grantee that they own the property being conveyed and have the legal right to transfer it.
Mixed-use development integrates multiple property types, such as residential, commercial, and retail, into a single project or compact area to create vibrant, walkable communities.
Multi-family investing involves acquiring properties with multiple residential units to generate rental income, benefit from economies of scale, and achieve long-term appreciation. It's a strategy for diversifying income and scaling a real estate portfolio.
A multi-family property is a residential building containing two or more separate dwelling units, offering investors multiple income streams from different tenants.
Multifamily construction involves the development and building of residential properties designed to house multiple families or tenants, such as apartment complexes, condominiums, or townhouses, often for investment purposes.
A multifamily loan is a type of commercial real estate financing used to purchase, refinance, or develop properties with five or more residential units, distinct from traditional single-family mortgages.
A net lease is a commercial real estate lease structure where the tenant is responsible for paying a portion or all of the property's operating expenses in addition to base rent.
New construction refers to the process of building a property from the ground up, rather than acquiring an existing structure. For investors, it involves developing or purchasing a newly built residential or commercial property, offering distinct advantages and challenges compared to existing real estate.
New construction homes are properties that have been recently built and have never been occupied. They offer modern features, energy efficiency, and the opportunity for customization, appealing to both homeowners and real estate investors.
An office building is a commercial property designed for businesses to conduct administrative, professional, or commercial operations, offering spaces for work and meetings.
An Option to Purchase Land is a contractual agreement giving a buyer the exclusive right, but not the obligation, to buy a specific property at a predetermined price within a set period, in exchange for a non-refundable fee.
An owner-occupied multi-unit property is a residential building with two to four units where the owner lives in one unit and rents out the others, leveraging rental income to offset mortgage payments and build equity.
An owner-occupied property is real estate where the owner lives as their primary residence, often qualifying for favorable financing, lower down payments, and significant tax benefits.
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