Archive for the 'Term of the day' Category
Term of the day: Pro-forma
Pro forma: In reference to real estate rents, pro forma is the rent amount that the seller believes is fair, relative to the area. It’s basically a projection of what you can get. Often (I should say always) this is inflated, unrealistic or incomplete. Find out the actual rents or gross income. Even if the […]
Read More..>>Term of the day - All bills paid
All bills paid: In relation to rental units, this means that the landlord pays all the bills, such as electric, gas, water, etc. Basically, the cost is included in the rent and the tenant only has to make one payment to the landlord a month.
Read More..>>Term of the day - Acceleration Clause
Acceleration clause: A clause in a loan where the lender can demand immediate payment if a specific thing occurs. The most common reason an acceleration clause is triggered is that a borrower defaults or transfers title without informing the lender.
Randy talks about some mortgage terms, including the acceleration clause at Why is a Deed […]
Term of the day - Mechanic’s lien
Mechanic’s lien: This is when a subcontractor or supplier places a lien, or security interest, on a property because they didn’t get paid. This exists to protect contractors and generally gives them priority payment in a foreclosure situation. The laws are state-specific.
DirtLaw blog gives us Liens and Stop Notices, oh my!
Andrea Goldman posts Mechanics Liens […]
Term of the day - Cash on Cash
Cash on Cash: This is the cash flow for the first year divided by the amount of cash you put up to purchase the property. The cash flow is pre-tax, but post expenses. For example, let’s say I buy a rental house and put 20% down. If the house costs $100,000, I put $20,000 down. […]
Read More..>>Term of the day - Triple Net Lease
We’re going to start a new feature here at The Property Pundit. The term of the day will give a definition of a real estate investing term, along with some links to blog posts or articles about it. Some terms may be basic, some more in-depth. Enjoy!
Triple Net Lease: This is a lease where the […]
