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Real Estate Investing Glossary

Plain-English definitions of the multifamily and passive investing terms we use across the site. Each entry links to the related concepts so you can follow the thread.

Returns

Cap RateCash-on-Cash ReturnEquity MultipleGross Rent Multiplier (GRM)Internal Rate of Return (IRR)Price Per Unit

Financing

Bridge LoanDebt Service Coverage Ratio (DSCR)Debt YieldLoan-to-Value (LTV)

Structure

Accredited InvestorEquity WaterfallGeneral Partner (GP)Limited Partner (LP)Preferred ReturnPromote (Carried Interest)Real Estate Syndication

Strategy

Value-Add

Tax

1031 ExchangeDepreciation

Operations

Capital Expenditures (CapEx)Effective Gross Income (EGI)Loss to LeaseNet Operating Income (NOI)Occupancy RateOperating Expense RatioPro FormaRent Roll