Real Estate Jargon/EDU

The main reason and focus of Mogul Launcher is to benefit and educate investors of all types in purchasing real estate. Commercial Real Estate Investment is a new area for many real estate investors. In an effort to assist those who are not familiar with real estate jargon, this article is meant for you. Below is an alphabetical list of terms used in this field.

Anchored tenants: large national brand tenants such as Albertsons, Longs Drug, Walmart, who bring a lot of traffic in the middle of the shopping cart.
CAM: Maintenance Area. Common fees associated with CAM CAM. For NNN leases, see CAM-term rates, tenants pay rent money to cover propertyTaxes, insurance and maintenance.
Cap Rate: The return of investment in the first year after purchase. Capitalization rate is the ratio of 1 Years operating income for the purchase price. The higher the cap, the higher the rental income. For people who invest in the stock market, the maximum rate is the reciprocal of P E.
Cash On Cash: APR return of your deposit without detection. First year cash flow from your original down dividedPayment.
Conduit loan: as Commercial Mortgage Backed Securities (CMBS) loans, often at lower cost than traditional commercial loans, but in a high prepayment penalty (the so-called sale of a penalty or yield maintenance) or no flexibility in payment.
CPD: car per day or volume of traffic on a road.
CPI. Consumer Price Index is often used to compensate for inflation to calculate the annual rent increase.
Due Diligence Period:the period after the decline of 15-30 days for buyers to verify ownership. The buyer may cancel the contract at that time and for any reason and receive a full refund of the deposit.
estoppel certificate: a letter signed by the lessee provided and confirms the terms and conditions of the current lease.
Full-service leasing: leasing, in which tenants pay rent, utilities, includes all-inclusive.
Gross Income: annual income firstCosts.
Gross lease: the tenant lease to pay rent. The owner pays, insurance fees and maintenance.
Total: Gross Lease able area or gross lettable area. This is the space that can be hired and receive rental income. Not included are facilities for services, elevator, etc.
GRM: Gross Rent Multiplier for apartment. Ratio between purchase price and annual income.
LLC: limited liability company. A legal person established in many investors toown commercial real estate.
LOI: Letter of intent / interest or commitment letter is not normally the property, an offer to buy a business.
May reviewer: Member Appraisal Institute accountants.
Master Lease: Lease signed by the seller to rent space to ensure clear offer for rent.
Mixed Use: retail commercial real estate with the first floor and apartments upstairs.
Triple Net (NNN) Lease: Lease intenants to pay the basic fee plus tax on rental property, insurance and CAM. Absolute NNN NNN lease rental agreement that tenants also pay for property management.
NOI: net operating income. annual income, after all costs (taxes, ins., & Maintenance) other than the payment of the loan.
Hall: Stand-alone building in a strategic position in a large shopping center.
Pass Through: see refund.
Percentage lease: Leasing, in which tenant pays rent based moreShare of income of the tenant.
Phase I Report on the inspection report is an assessment that the contamination of the soil / environment. It is usually required by the lender as part of the process of loan approval for a commercial property.
Phase II report: Report of inspection to soil, groundwater, surface surveys. This control is more complete, including testing to see if there is a pollution of soil and water.
Pro-forma net income: potential, iehigher income when the property is 100% leased.
Proforma Cap Rate: maximum potential rate of adoption is 100% leased property for rent to the market.
Repayment: The amount of the fee for insurance and property taxes CAM, the tenant must pay a basic fee, the owner of the next.
Guaranteed rent: rooms for rent paid by the seller to the buyer for the vacant until it rented.
SBA loans: the government guaranteed loans for home ownership.
SNDA:Subordination, non-interference Attornment. This is an agreement pursuant to the agreement signed by the tenants banks: the lender of a new bond in the position, as landlord in the case of exclusion, tenant rent as valid as long as it is not in default.
TIC: Tenants in common. One way for small / self-directed IRA investors own a share of ownership of high quality as tenants in common.

Making An Investment In California Real Estate

If you are thinking about making a real estate investment, you should consider California real estate. The real estate scenario in California is in a real boost now, with so many people willing to buy properties in the region. California homes for sale are one of the most in demand properties – these properties are demanded by not only the local residents but by those people also who are looking forward to rent these properties during their stay in California.

Thus, as a real estate investor one of the wisest decisions would be to buy any property and rent it out to tourists or other people and then sell it off later on. If you rent it out to tourists you will have a steady income while if you choose to sell if off, you will be able to make some good money, because these properties are going to have a boost in their values soon.

Here are some more reasons why making an investment in California real estate is considered to be a wise decision now.

Property values on the rise: Recent statistics have revealed that property values in California are appreciating. You might choose any kind of property; you will find that its value is on the rise. Thus, suppose you make an investment now and you sell if off in a few years, you are sure to make some quick profits. Moreover, if you wish to ensure that you make profits, you should make an investment in Southern California realty. The property values in this place are on a high like never before.

Rent out California real estate: Suppose you choose to buy a property now but at present you do wish to stay there. In such a case, you just need to rent out such a property to students, professionals and tourists. In such a case, you will be able to get a steady income every month. Thus, this is said to be a great idea for those who are looking for an increase in their monthly income.

Use it as your holiday home: If you do not stay in California but love to stay there during your holidays, you can purchase a California real estate and use it as your holiday home. You will be staying there during your holidays – you do not have to rent any additional place and pay hefty amount as bills. Moreover, your friends and relatives will also be able to enjoy the place anytime they wish. If you wish to buy any property as your holiday home, it is best to choose San Clemente real estate. This is the best place in terms of location, entertainment, convenience and comfort.

Prices of property affordable: Southern California realty is considered to be one of the most affordable properties of the region. You can choose between luxury homes, condos, apartments, cottages and villas – you will find that all properties are affordable and are the true value for the money you choose to spend on them.