Real Estate Dictionary

What Does AUM Mean in Real Estate?

In real estate, AUM (Assets Under Management) refers to the total market value of properties a firm or fund oversees, impacting performance metrics, fees, and investor confidence.

What does bad debt mean in multifamily property management?

Bad debt refers to uncollectible tenant dues such as overdue rent or fees, impacting net operating income. Property managers should implement effective tenant screening and collection practices to minimize losses due to bad debt.

What Does Borrowing Base Mean in Real Estate?

In real estate, a "borrowing base" is the discounted value of collateral properties used by lenders to determine the maximum loan amount they are willing to offer, ensuring the loan is adequately secured by the property's appraised market value.

What does BTR mean in multifamily housing?

"Build-To-Rent" (BTR) in multifamily housing refers to properties specifically designed and built for the rental market, often featuring modern amenities and managed by a single entity to create a community atmosphere for residents.

What does build to suit mean?

"Build to suit" refers to a development approach where a property is designed and constructed to meet the specific requirements of a tenant, who has agreed to lease the property once it's completed.

What does capital stack mean in real estate?

The capital stack in real estate refers to the hierarchical arrangement of financing sources, from the lowest-risk senior debt to the highest-risk common equity, each layer offering different levels of risk and return.

What does Champion Home Builders do?

Champion Home Builders, a subsidiary of Skyline Champion Corporation, is a prominent name in the mobile and modular home manufacturing industry in North America. Established in 1953, the company has grown to become one of the largest modular homebuilders on the continent.

What Does CLTV Mean in Real Estate Lending?

In real estate lending, CLTV (Combined Loan-to-Value) measures the total amount of all loans on a property relative to its market value, helping lenders assess risk and borrower equity.

What Does Compact Parking Mean?

Compact parking refers to smaller parking spaces designed for compact cars, allowing more vehicles to fit in a given area.

What does conformity mean in real estate?

Conformity in real estate is the principle that a property's value increases when it closely matches the surrounding properties in use, style, size, and age, enhancing its desirability and appeal.

What does CTL mean in real estate?

A Credit Tenant Lease (CTL) is a real estate investment strategy involving long-term leases to financially strong tenants, where the lease payments secure mortgage debt and offer investors a predictable income stream with a lower risk profile.

What Does Defaulting on a Loan Mean?

Defaulting on a loan occurs when a borrower fails to meet repayment obligations, leading to consequences such as late fees, credit score damage, potential legal action, and liabilities for co-signers.

What Does Earn Out Mean in Commercial Real Estate?

In commercial real estate, an earn-out is a financial arrangement where part of the payment or loan is contingent upon the property meeting specific post-transaction performance targets.

What does economic base mean in real estate?

The economic base in real estate refers to the primary industries driving a region's economy, which significantly influences real estate demand, property values, investment decisions, and urban development.

What Does Eff Year Built Mean?

"Eff Year Built" on a tax statement stands for "Effective Year Built." It's a term used in property assessment and taxation to represent an estimate of when a building's current condition reflects a similar state to that of a new building.

What Does ESG Mean in Real Estate?

ESG in real estate refers to evaluating properties based on environmental sustainability, social responsibility, and ethical governance practices to create value for investors, tenants, and communities.

What Does Estated Do in Real Estate?

Estated is a company that provides real estate data services. It specializes in aggregating and distributing property data to various clients, including real estate investors, insurance companies, financial institutions, and technology firms.

What does Evra by Geophy do?

Evra is an AI-powered valuation platform designed for the commercial real estate (CRE) sector. It helps commercial real estate professionals such as investors, lenders, and researchers access data-driven valuations of multifamily properties. It was developed by Geophy prior to its acquisition by Walker & Dunlop in 2022, and provides an alternative

What Does FFO Mean in Real Estate?

Funds From Operations (FFO) is a key financial metric for real estate, especially REITs, that adjusts net income by adding back depreciation and subtracting property sale gains to better reflect recurring cash flow and operational performance.

What Does FRBO Mean in Real Estate?

"FRBO" stands for "For Rent By Owner." This term is used to describe properties that are available for rent directly from the owner, rather than through a rental agent or property manager.

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