Real Estate Dictionary

What is a Bridge Loan in Real Estate?

A bridge loan is a short-term financing solution used to cover the immediate need for cash in the period between requiring funds and securing permanent financing or selling a property, often at higher interest rates and secured by property assets.

What is a Broker Price Opinion in Real Estate?

A Broker Price Opinion (BPO) is a cost-effective, expedited estimate of a property's market value provided by a licensed real estate broker or agent, typically used by financial institutions for purposes like loan modifications, foreclosures, and short sales.

What is a Building Implosion and How Does it Work?

A building implosion is a demolition method that uses explosives to collapse a structure inward, ensuring minimal impact on the surrounding area through careful planning and controlled detonation.

What is a Business Equity Loan

A Business Equity Loan allows businesses to borrow against the equity in their assets, such as real estate or equipment, providing access to larger funds at lower interest rates but with the risk of losing collateral if the loan isn't repaid.

What is a capital call in real estate?

A Capital Call may occur due to the need for additional funds for investment opportunities, to cover unexpected expenses, or to meet financial commitments not initially anticipated by the fund.

What is a Carriage Garage?

A carriage garage is a modern garage styled to resemble a historic carriage house, often detached and featuring decorative elements or living space above.

What is a carry back loan?

A carry back loan is a financing arrangement where the seller of a property acts as the lender to the buyer, providing a loan for the purchase that is repaid directly to the seller under agreed terms.

What is a carve out in real estate?

A carve-out in real estate is a loan agreement provision that holds the borrower personally liable for certain bad faith actions, moving beyond the property collateral to potentially expose personal assets.

What is a Carveout in Real Estate?

A carveout is a provision in a non-recourse loan that holds the borrower personally liable for specific misconduct, like fraud or environmental damage, thereby protecting the lender.

What is a cash debt coverage ratio in real estate?

The cash debt coverage ratio in real estate measures the ability of a property's operating cash flow to cover its debt obligations, indicating financial health and risk.

What is a Catch-up in Real Estate Financial Modeling?

A catch-up is a provision in a waterfall model that allows the sponsor (GP) to receive a larger share of profits after investors (LPs) achieve their preferred return, ensuring the GP is fully compensated for their promote before standard profit splits begin.

What is a CELOC in real estate?

In real estate, CELOC stands for Commercial Equity Line of Credit. It is a type of financing that allows property owners to access the equity in their commercial property as a flexible line of credit.

What is a Certificate Backed Mortgage?

A Certificate Backed Mortgage (CBM) is a type of mortgage backed by mortgage-backed securities (MBS), where certificates representing ownership in a pool of mortgages are sold to investors, providing liquidity to lenders and a stable income to investors.

What is a Certificate of Occupancy in Real Estate?

A Certificate of Occupancy is a local government-issued document confirming that a property meets all relevant building codes, zoning regulations, and safety standards, and is therefore legally fit for occupancy.

What is a Certificate of Rent Paid and When is it Needed?

A Certificate of Rent Paid (CRP) is a document issued by landlords detailing rent payments for tax purposes, commonly used by tenants in states like Minnesota to apply for renter's property tax refunds.

What is a Change Order in Construction?

A change order in construction is a formal, written modification to the original contract between a project owner (client) and a contractor. It specifies adjustments to the scope of work, cost, schedule, or other contract terms that weren’t included or fully detailed in the initial agreement.

What is a chart of accounts in real estate?

In real estate, a chart of accounts is an organized list of all financial accounts in a company's accounting system. It is important for accurate record-keeping and financial reporting.

What is a Chatbot in Multifamily?

A Multifamily Chatbot is a specialized AI tool designed to enhance tenant support, streamline property management operations, facilitate maintenance requests, assist with leasing processes, and provide 24/7 communication for multifamily housing properties.

What is a Clawback in Real Estate Financial Modeling?

A clawback in real estate financial modeling is a provision that allows investors to recover previously distributed profits or fees if financial performance targets aren’t met, ensuring fair profit-sharing and sponsor alignment.

What is a CLO ETF in Real Estate?

A CLO ETF is an investment fund that provides exposure to a diversified portfolio of real estate-backed loans, offering potential high returns and liquidity but with inherent market and credit risks.

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