Real Estate Dictionary

What is a lockout period in a commercial mortgage?

A lockout period in a commercial mortgage is a time-based restriction preventing early loan repayment, ensuring lender income stability, and necessitates careful long-term financial planning by the borrower due to potential subsequent prepayment penalties.

What is a LURA in Real Estate?

A LURA is a legal agreement that ensures a property remains affordable for low-income tenants by imposing income and rent restrictions and binding future owners to these terms.

What is a Market Analysis in CRE?

A market analysis in real estate, often referred to as a Comparative Market Analysis (CMA), is a study designed to determine the estimated value of a property, based on the current market conditions.

What is a marketing package in a real estate transaction?

A marketing package in real estate is a detailed document showcasing a property's features, financials, images, location analysis, and lease or sale terms to attract and inform potential buyers or tenants.

What is a Master Lease Agreement in Real Estate?

A Master Lease Agreement is a lease where a property owner rents to a master tenant who subleases to others, managing the property and rent collection while assuming financial risks and operational responsibilities.

What is a master servicer in real estate finance?

A Master Servicer in real estate finance manages daily operations of loans, including payment collection and distribution, escrow management, and communication with borrowers, ensuring smooth loan servicing and investor compliance.

What is a Maximum Allowable Offer (MAO) in Real Estate?

The Maximum Allowable Offer (MAO) is the highest price a real estate investor should offer for a property, calculated by subtracting repair costs from 70% of the After Repair Value (ARV) to ensure profitability.

What is a Merchant Builder in Commercial Real Estate?

A Merchant Builder in commercial real estate is a developer who constructs properties with the intent to sell them quickly after stabilization, focusing on short-term value creation rather than long-term ownership and cash flow.

What is a mini perm in real estate?

A "mini-perm" is a short-term loan in real estate financing, typically lasting 3 to 5 years, used to pay off initial construction costs before refinancing with a longer-term loan or selling the property.

What is a modified gross lease in real estate?

A modified gross lease in real estate is a type of commercial lease where the tenant and landlord share the property expenses, offering a balance between the predictability of a gross lease and the cost-sharing of a net lease.

What is a Mortgage Constant and How is it Calculated?

A mortgage constant is a percentage that represents the annual debt service (both principal and interest) relative to the total loan amount, calculated using the formula for annuity payments based on the loan's interest rate and duration.

What is a Mortgage REIT?

Mortgage REITs invest in mortgages and mortgage-backed securities, using leverage to enhance returns and distributing most of their income as dividends, but they are highly sensitive to interest rate changes.

What is a Mother-Daughter House?

A mother-daughter house is a single-family home modified to include two separate living spaces for close family members to live near each other while maintaining privacy and independence.

What is a Movein Special?

A Move-In Special is a temporary rental promotion offering discounts, waived fees, or perks to attract new tenants and fill vacancies quickly.

What is a multifamily rent comparable and how do you identify them?

A rent comparable, often referred to as a "rent comp," is an important concept in real estate, particularly in property management and investment. It refers to a property similar to the subject property in terms of various characteristics, used as a benchmark to determine the market rent for the subject property.

What is a Multifamily Rent Survey?

A multifamily rent survey is a study or analysis conducted to gather, compare, and evaluate rental rates of multifamily properties (e.g., apartment complexes) within a specific market or area.

What is a multiple on invested capital?

Multiple on Invested Capital (MOIC) measures how many times the initial investment has been returned through income and appreciation, providing a simple way to compare investment effectiveness without considering the holding period.

What is a narrative appraisal report in commercial real estate?

A narrative appraisal report in commercial real estate is an in-depth analysis of a property's value, covering its characteristics, market conditions, valuation methods, and financial potential, used for informed decision-making in financing, insurance, and investment.

What is a near-stabilization execution in real estate?

A near-stabilization execution in real estate refers to the investment strategy or financing approach taken as a property approaches its stabilized state—meaning it is close to achieving optimal occupancy and operational performance.

What is a No-Cause Eviction?

A No-Cause Eviction is when a landlord terminates a lease without giving a reason, typically requiring advance notice and subject to local tenant protection laws.

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