Glossary

A Master Lease allows tenants to rent a property and sublease, providing steady income for owners and potential earnings for tenants.

Accelerated depreciation lowers taxes in the short term, boosting cash flow, but may lead to depreciation recapture upon selling.

Anchor tenancy involves major tenants leasing significant space in commercial real estate, drawing foot traffic and attracting smaller tenants.

Real estate underwriting evaluates lending risks, considers credit, debt, NOI, market conditions, and aims to secure investments.

The Loan-to-Value (LTV) ratio measures the loan amount against property value. Lower ratios yield better loan terms and reduced risk.

Unsubsidized housing in real estate lacks government financial support, setting rents based on market conditions, excluding income-limited tenants.

A title company issues a crucial document called a title commitment in real estate transactions. It’s a promise to provide title insurance under specific terms. The commitment lists conditions that

ARV, or After Repair Value, refers to the projected value of a property after it has undergone renovation or repair work. Real estate investors calculate ARV to decide if a

“REO Occupied” or Real Estate Owned occupied refers to a property owned by a bank after foreclosure. However, the former owner, a tenant, or a squatter still lives in the