Acceleration Clause – Lender can demand full loan repayment if terms are breached.

Accredited Investor – Individual/entity meeting SEC income, net worth, or professional criteria.

ADR / Occupancy – Short-term rental average daily rate and % of nights booked.

Allonge – Addendum used to endorse or assign a promissory note.

Amortization – Paying down loan principal and interest over time.

Appraisal – Professional estimate of a property’s market value.

ARV (After-Repair Value) – Projected value of a property after renovations.

Assignment – Transfer of contract rights to another party.

Assignment Fee – Profit earned from assigning a contract to a new buyer.

Balloon Payment – Large final payment due at loan maturity.

Bridge Loan – Short-term financing until permanent funding is in place.

BRRRR – Buy, Rehab, Rent, Refinance, Repeat investing method.

Cap Rate – NOI divided by property value, used to measure yield.

Capital Gains – Profit from the sale of an asset, taxable under law.

Capital Stack – The layers of debt and equity used to finance a deal.

Cash for Keys – Payment to occupants to vacate a property voluntarily.

Cash-on-Cash – Annual cash flow divided by total cash invested.

Cloud on Title – Legal claim or defect affecting property ownership.

Collateral – Property pledged as security for a loan.

Contract for Deed (Land Contract) – Seller-financed deal where title transfers after a milestone is reached.

Deed of Trust / Mortgage – Document securing a loan with property.

Default – Failure to meet loan or contract obligations.

Debt Service – Total annual principal and interest due on a loan.

Disclosure Requirements – Legally required disclosures in a transaction.

Double Close – Back-to-back closings where wholesaler briefly takes title.

DSCR (Debt Service Coverage Ratio) – NOI divided by debt payments.

Due-on-Sale Clause – Loan may be called due if ownership transfers, though rare. 

Earnest Money (EMD) – Buyer deposit showing good faith in a deal.

Equitable Title – Buyer’s right to property before legal title passes.

Equity – Market value minus what’s owed on a property.

Escrow – Neutral third party holding funds or documents.

Escrow Instructions – Written directions for closing disbursements.

Exit Strategy – Planned method of profiting or exiting a deal.

Foreclosure – Lender reclaims property after borrower default.

Form D – SEC filing notice for a Reg D private offering.

GRM (Gross Rent Multiplier) – Property price divided by gross rent.

Hard Money Loan – Short-term, asset-based private loan.

Inspection Contingency – Contract clause allowing exit after inspection.

Intercreditor Agreement – Contract setting rules between lenders.

Interest-Only Loan – Borrower pays interest only for a set period.

ITV (Investment-to-Value) – Total invested capital divided by value.

Joint Venture (JV) – Partnership to share resources and profits on a deal.

Lease-Option – Lease with the right (not obligation) to buy later.

Lease-Purchase – Lease requiring tenant to purchase at term end.

Lien – Legal claim against property for unpaid debt.

Loan-to-Value (LTV) – Loan amount compared to property value.

Mortgage Note / Promissory Note – Borrower’s signed repayment promise.

NOI (Net Operating Income) – Income minus operating expenses, before debt.

Non-Recourse Loan – Lender’s only recourse is the property, not borrower.

Novation – Replacing an existing contract with a new one.

Option Agreement – Paid right to buy property within a set time.

Owner Financing (Seller Financing) – Seller provides financing directly to buyer.

Performance Deed / Mortgage – Security instrument ensuring deal obligations.

Points – Upfront lender fees, usually 1-3% of the loan each.

PPM (Private Placement Memorandum) – Disclosure document for investors in a private offering.

Prepayment Penalty – Fee for paying off a loan early.

Price vs. Terms – Trading seller’s price for favorable buyer terms.

Principal – The loan amount borrowed or outstanding.

Purchase & Sale Agreement (PSA) – Contract outlining price and terms.

Quiet Title – Legal action to resolve title disputes.

Recourse Loan – Lender can pursue borrower personally if default.

Refinance – Replacing an old loan with a new one.

Reg D 506(b) – Private offering: up to 35 non-accredited, no solicitation.

Reg D 506(c) – Private offering: general solicitation allowed, accredited only.

Sandwich Lease – Lease-option where investor subleases to tenant-buyer.

Seasoning – Required ownership or income history before refi/sale.

Second Mortgage – Junior loan secured by the same property.

Seller Pain Points – Motivations like foreclosure, taxes, or relocation.

Subject-To (Sub2) – Buyer takes title, seller’s loan stays in place.

Subordination Agreement – Agreement changing lien priority.

Tax Lien – Government claim on property for unpaid taxes.

Title – Legal ownership of real property.

Title Insurance – Protects against title defects or disputes.

Transactional Funding – Very short-term funding for double closings.

Underwriting – Lender’s risk evaluation before approving a loan.

Usury Laws – State laws limiting maximum interest rates.

Vacancy Rate – Percentage of unoccupied rental units.

Waterfall – Profit distribution order among investors.

Wholetail – Light rehab and retail resale strategy.

Wraparound Mortgage – Seller loan that wraps around existing mortgage.

Yield – Return on an investment, often % of cost or value.

Zoning – Local laws governing property use and development.