Financial Glossary

A tax-deferral strategy allowing real estate investors to swap properties without triggering immediate capital gains taxes.

Cap rate measures a property's annual net operating income as a percentage of its purchase price or current market value.

Income-producing property used for business purposes, including office buildings, retail spaces, warehouses, and industrial facilities.

A mortgage loan with an interest rate that remains constant throughout the entire loan term, providing predictable monthly payments.

A legal process where lenders seize and sell properties when borrowers default on mortgage payments, often creating investment opportunities.

A homeowners association that manages common areas and enforces rules in residential communities, funded by mandatory fees from property owners.

The number of new residential construction projects that began during a specific period, tracked monthly by the government.

The annual interest rate charged on a mortgage loan, typically expressed as a percentage and determining monthly payment amounts.

Net Operating Income (NOI) is a property's annual revenue minus operating expenses, excluding financing costs and depreciation.

A tax levied by local governments on real estate based on assessed property value, paid annually by property owners.

A REIT is a company that owns and operates income-generating real estate, trading like a stock while paying out most profits as dividends.

A partnership where multiple investors pool money to buy property too expensive for individual purchase, sharing profits and risks.

Replacing an existing loan with a new one, typically to secure better interest rates, terms, or access equity built up in the property.

Annual rental income from a property expressed as a percentage of its current market value or purchase price.

The percentage of rental units sitting empty in a property or market, measuring supply-demand balance and investment performance.